Digital downloads of movies pose a major threat to the film industry, say US analysts.
Movies downloaded from Itunes cost an average of $9.29, some 12% less than the studios get for selling them on Blu-ray discs at $10.59, says Lehman Brothers' Anthony DiClemente.
Stocks of Disney, CBS, Time Warner, News Corp and Viacom all fell on the news yesterday, with CBS down by 4.7% to $17.73.
'Shifts from physical to digital will disrupt the marginal economics of the TV and movie businesses, just as it did for music,' DiClemente told a press conference, adding that the studios also make as little as $1.81 from each movie rental.
'Owning a collection of movies in this new digital world is really just not that cool for young adults in the target demographic that we look to for the future of the business,' DiClemente added. X
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