Executives at Cinram International's annual meeting assured shareholders digital downloading wouldn't affect the profitable DVD business in the near future. Cinram is one of the World's largest manufacturers of pre-recorded DVD, VHS Video Cassette, CD-Audio, CD-ROM, and Audio Cassette.

A study done by Jim Jenkins at UCLA concluded that future media transmission will be done over fibre optic cable directly to the consumer's home. However, only about 20% of American homes are expected to have fibre optics by 2010.

The study further indicated that the majority of people prefer to watch movies on their TV sets and not on a computer screen.

Cinram acquired AOL Time Warner's DVD and CD making business and made a multi-year deal to make and distribute DVDs and VHS tapes for Metro-Goldwyn-Mayer Studios in the United States and Canada.

However, Microsoft's desire to accelerate digital distribution of media will challenge Cinram. Cinram's chief executive and founder Isidore Philosophe said in an interview after the meeting that even once DVDs begin to lose their popularity, Cinram should be able to use its logistics and distribution know-how to drum up more business.

From cnews