The situation for video stores may not be as gloomy as everyone has made it out to be. In fact, the biggest problem for DVDs could be a shortened Pay Per View Window.

According to Home Media Retailing, "Somehow, investors understood the suggestion of the collapse of the theatrical release window as implying the collapse of all windows," analysts Michael Pachter and Edward Woo of Wedbush Morgan Securities wrote in a recent report. "In our view, the collapse of the theatrical window is to sell a greater number of DVDs. ... Should the window between DVD release and the availability of a movie on PPV or VOD be similarly collapsed, we believe that consumers will have an incentive to wait until the film is available on VOD, limiting demand for DVD sellthrough."

The report mentioned DVDs like The Incredibles and Shrek 2, which may have suffered greater returns when they were made available too soon on Pay Per View.