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Parsons: Expect Collapse of Download/DVD Window in 2007

7 Dec, 2006 By: Erik Gruenwedel

Time Warner chairman and CEO Dick Parsons said if Wal-mart's experimental download-to-burn kiosks take off, it would result in a collapse of DVD's stranglehold in the distribution food chain.

Speaking last week at a Credit Suisse media conference, Parsons said widespread consumer adoption to burn physical DVDs in a retail store would be a win-win for the studios, retailers and consumers.

He said the switch would allow retailers to avoid expensive inventory costs while enabling studios to reduce manufacturing costs and get product out to consumers more quickly. Consumers could get the movies they want it, when they want and in the format the format they want, said Parsons.

“If that happens you will see some obvious collapsing of the windows at least in relations to the day-and-date DVD release and download to burn,” said Parsons. “That would be the shift in windowing that I would look for.”

However, Parsons said he would not anticipate a sale by studios of an electronically distributed format prior to the DVD release.

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