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“Our motivation is to improve our return on capital,” Bewkes said. “Doing that we believe we can move profit up.”
To accomplish this, the CEO said the studio will focus on building wider consumer adoption of Blu-ray, expanding cable video-on-demand simultaneously with standard DVD (Bewkes said cable VOD generated more than three times the margins of DVD rental) and other electronic distribution. [/FONT]
[FONT=arial, helvetica, sans-serif]He said DVD has been a reliable revenue generator for all studios the past five years. Bewkes said that for every $100 in box office revenue, Warner Home Video extracted more from DVD. [/FONT]
[FONT=arial, helvetica, sans-serif]Bewkes said expansion of Blu-ray, VOD and related improvements in electronic distribution by moving away from physical DVD would help grow filmed entertainment. [/FONT]