Boiled down, the core argument is basically: You saw what happened to the music industry and the dramatic fall-off in CD prices. You’ve seen what’s happened to the broadcast TV and newspaper industries. Now it’s time for it to happen to TV and filmed entertainment. Hopes that digital revenue might somehow make up for lost physical sales are misguided, he [DiClemente] says, and again, you just have to look back at the music industry.
During a conference call, DiClemente also touched on the growing issue of rentals vs. purchases. From CNBC:
“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 said.