Two blog posts worth a look
...there is little on YouTube and many other sites on the Web now that could ever gross what the next “Harry Potter” movie will, but what is there definitely costs a lot less, is improving in quality quickly and will eventually (remember, these are the first innings) yield just the kind of hit that Hollywood loves. I am betting that hit will not be from Hollywood.
Many of the earliest Net hits ("This Land," "Evolution of Dance") haven't been from Hollywood. But look what happens when a big Hollywood star like Will Ferrell makes a video and puts it on the Net. Instantly, a skillion views. Don't count Hollywood (or rather, don't count Hollywood creatives) out.
- Om Malik on "Why Hollywood Suddenly Loves Tech." As DVD sales stall, Hollywood is looking to digital downloads as a savior, Om theorizes.
Partially true, but they still are trying to stick with DVD pricing... and make any company that wants to distribute their content make all sorts of revenue guarantees about how many downloads they're gonna sell.