What are the advantages of traditional distribution channels over electronic distribution for movies?
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The first major advantage for a film company in traditional distribution is that it is much harder to pirate. Piracy, especially in countries such as China, has had a significant negative impact on the profitability of film production.
Another major advantage of traditional distribution is higher profits. When movies are bundled for electronic distribution, first, people are willing to pay less per movie than when they are sold via traditional channels (especially theatres) and second, distributors of electronic versions often receive very substantial discounts.This shift towards high-volume, low-cost models makes it hard to recoup costs in an industry where one blockbuster pays for many failures.
Finally, producers have more control over how their films are distributed through traditional outlets.
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