I think the (few) DVD studios that are smart and forward looking will do OK.

What we're seeing on the retail DVD side of our business is that a number of studios seem to be going into "panic mode" and are drastically lowering wholesale prices... which, in turn, is going to eventually trash the retail prices of their products... which, in turn, is going to make it impossible for them to produce new content, since they won't be able to sell enough at the reduced price to pay for production costs.

The problem is *really* bad on the straight side of the business. There are lots of straight titles, some of reasonable quality, available at $2 to $4 wholesale, which really doesn't leave much margin, even if your disc run is 5 or 10,000 units.

Other studios are simply taking it slow, maintaining their wholesale (and therefore retail) prices.

Undoubtedly there will be some price adjustment, but I suspect much of that has already happened at the retail level; already, almost every bricks-and-mortar chain is having serious problems, because their business model relied on selling gay product at $50 to $70 and straight product at $30 to $50, which was an outrageous markup... and they are getting slaughtered by the online retailers, who have virtually no overhead costs.