Kevin, I understand the model you describe, and if it applies here, best of luck to all concerned. I just find it hard to believe that there's still a market for relatively obscure films that have already had numerous dvd releases. It's 2009 and broadband is common place. I realise that impulse purchases happen - that people are attracted (or not) to packages that catch their eye in HMV - but I'm sceptical as to whether they happen enough to justify more editions of familiar cult films. I suppose we don't know anything about these releases yet, and it may be that we can look forward to unprecedented quality, interesting extras and beautiful packaging . . . maybe.
I hope I'm wrong, btw, and that in six months time we're discussing Arrow's release of Libido rather than the demise of this line. I think they'd stand a better chance if they kicked off with something like The Washing Machine, though.
