From former Miramax prez Mark Gill’s address at the LA Film festival:

When the movie business went from tape to digital [i.e., from VHS to DVD], we dropped the wholesale price per unit from $65 to $10. And everyone said: “Oh my god, they’re killing the business. Our profit margins are ruined.” Well, the margin was smaller, but sales exploded. The studios made tens of billions of dollars on the difference. And consumers mostly like what they’re getting. So much so that movies are the second-highest rated consumer value for the money. Behind only chicken. Not so for albums, which are so far down the list you can’t find them.