Movie Studios like Paramount and Time Warner (Warner Bros.) dominated for a span of about five years with the release of the miraculous device: the DVD.  With the DVD, people could actual rent or even buy a movie they love and take it home and watch it at their leisure.  Warner Bros. made $923 million in revenue from home video sales compared to the $1.23 it made in the prior quarter.

For almost a solid 20 years, DVDs and VHS sales were the hugest source of profit for these studios.  DVDs even out sold box office sales from 2002 through 2009.  During the same period described above, Netflix added 3 million users (majority streaming users).  Netflix currently has ~20 million users, which is a 60% increase from the prior year.  And at only $7.99/month, I’m sure the users will continue to flock to Netflix.

And now, what we all want to know…

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