Professor Elam

In my lifetime the delivery of electronic entertainment has undergone several changes. 

In music we went from records and reel to reel tape to eight track to cassettes to CDs to iTune downloads.

In movies we went from movies at the theater to television (really commercially successful in the 1950s) to cable television to VCR and Beta to laser disc to DVD to pay for view and internet downloads. 

The value of intellectual property is there but fleeting.  Trying to gauge how much a movie will make just got more difficult if one cannot count on DVD sales.  So put that in your calculator. How does one compute cost of capital and present value when future sales can vary so much?

And by the way, do not assume that everyone can just throw up a video on You Tube and be a success.