Although it was tough to see then, the writing has been on the wall in hindsight. After Warner Bros. absorbed New Line Pictures, characterizing it as a "redundant infrastructure," it's now looking to focus less on cranking out blockbuster theatrical releases and more on pushing Blu-ray / VOD adoption. Jeff Bewkes, president and CEO of Time Warner Inc., has noted that the studio will trim its theatrical slate in half from two years ago, as it hopes to garner more profits by simply "building wider consumer adoption of Blu-ray" and expanding day-and-date VOD releases. Even more interesting was Bewkes assertion that the "expansion of Blu-ray, VOD and related improvements in electronic distribution by moving away from physical DVD would help grow filmed entertainment." After looking at a few motion picture budgets, it's pretty easy to see why distribution looks so delicious. [Disclosure: Engadget is part of the Time Warner family]

[Thanks, xdragon]