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Movies don't cost any less to be shown at the $1 theater, or during the matinee hour. There's a premium you pay to watch a "first run" movie at the theaters. During that window of time, they do not sell the dvd, they do not show the movies in your hotel and they don't play them on HBO or on network TV.
Movies go through windowing from greater to lesser cost. Books have done the same thing. They don't release the paperback at the same time as the hard back. The difference in the price of a paperback and a hardback has never been about the cost of producing the hard back.
People that thought otherwise -- didn't think very well.
Lee
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