Hollywood and home entertainment: The film industry tries to revive the ailing home-entertainment business

The Economist reports:

In 2006 the members of the Motion Picture Association of America released 204 films, including 80 from their subsidiaries—partly independent outfits like Miramax and New Line. Last year the studios released 141 films, including just 37 from subsidiaries. Truly independent film-makers, who have lost not just home-entertainment revenues but also outside financing, are struggling even more than usual. If you think there are fewer thoughtful, well-crafted films around these days, you are right.

The DVD slump has also divided Hollywood. Film executives, though they eat in the same few restaurants and attend the same parties, cannot agree on the best way of reviving the home-entertainment market, or even on what has caused it to slump. But so perilous is their position that some bold experiments are under way. Chaotically, but quickly, the studios are about to bulldoze conventional wisdom about how films should be sold.

An article well worth your time.