The price of DVDs is artificially high. The cost of the disk isn't more expensive then tape (prob. less). The royalties are the same between the two so what is the difference. The difference is that they can charge that price and people want them?

If the price was much lower most of the people would prefer to buy then take the time and effort to download. There will always be sum who will prefer the download but who cares if their numbers are small. Just look at the number of people who rent. If prices were half the rental store would suffer but the studios would profit. Gee I winder who owns the rental stores.