What costs are movie studios reducing by using this alternative channel of distribution?

Read the case and fully answer every question posed. When you turn in your type-written, one-inch margin, double-spaced 10-12 point font, grammatically correct paper. It is going to be 2 pages. Focus on technology If you’re eager to get the latest movie released on dvd,you don’t have to go any further than your itunes account on your computer. Normally,this movies weren’t available from apple’s itunes until several weeks after they were released, but measure movie studios are allowing apple to sell movies that day they are released. consumers have been able to get movies on the same day as the dvd release from services such as cinemanow and movielink for a few years,but those e-tailers don’t have the same clouth as itunes,which is thr now biggest retailer of music in the U.S . although movie studios get less revenue than selling through traditional retail channels,their profits will be bigger due to lower costs.

1) What costs are movie studios reducing by using this alternative channel of distribution? (aacsb:communication;reflective thinking)

2) Is this an example of disintermediation? Will electronic distrubition dislays traditional distrubiton channels for movies? (aacsb:communication;reflective thinking)