Originally Posted by Paul Markham

Your basis argument is right, many todauy are not shooting because they are not selling. Where you're wrong is the cost of releasing a DVD. $1,500 per scene might just cover the cost of the models, shooters, lighting, sound, make up, location, other costs take it way over $2,000 jhust to shoot the film. Then editing, packaging, duplicating and promotion is more costs. Also I believe that unless the movie is that level they will be getting more like $5. The good movies try to cover all costs with US DVD sales, then there is mobile, Internet, Cable, Hotels and overseas licenses. This is where the profit is made. EU is the same. Just EU sales instead of US sales.

Produce a movie for $10,000 and the danger is it will not sell in many of these markets and consumer loyalty will suck as well after a few editions.

Some DVD companies realised that and many did not. That was the biggest reason for drop in sales once the consumer did not have to buy.