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Releasing the film in theaters first gets many people to pay for the movie twice--once to see in the theater (per person), and again when something is released on DVD (per copy). Disney would end up with less money, and yes, theaters would suffer.
That said, I do prefer to watch movies at home. And I paid about nine bucks each to see Star Wars and Charlie & the Choc. Factory this summer in the theater--neither of which I plan to purchase a DVD of. Hmmm.
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