The DVD business, after the lifeblood of mature movie producers, dwindled even further. Legal challenges over required condom regulations continued to dog the sector.
No one's positive, of program, but some insiders are cautiously optimistic the worst is over.
Steve Hirsch, Vivid Entertainment
"My basic feeling is the sector has bottomed out," claims Alec Helmy, founder and publisher of business trade publication Xbiz. "Businesses have figured out the best way to change their business models to keep up profitability.