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I think packaged media is pretty safe for the next 10 years. HMR: As it has with theatrical, does an ever-increasing percentage of a films DVD sales come from abroad? Dunn: Home entertainment is a worldwide business. The household penetration rates are north of 50% in all of the developed countries. It is a very significant marketplace and a very complicated one because there are different levels of piracy and competition in each territory. There are roughly 300 million people in the United States and nearly 6 billion in the rest of the world. Our business isnt 50-50 yet, but thats our goal. Weve structured our company to aggressively drive sales in every market. Its a well-oiled machine that gives us a true competitive advantage. HMR: Do the studios have a control on piracy overseas? Dunn: Piracy is like a rash. You have to fight it, fight it and fight it. There is not one solution to piracy; there are multiple solutions. It is an everyday competitor that we are attacking in a variety of ways. This studio is mobilized to meet this auto recovery services on every front, every day. HMR: How important is it to market DVD to alternative retail outlets supermarkets, Starbucks, convenience stores, etc. compared to mass merchants such as Target, Best Buy, Wal-Mart and Costco? Dunn: I still like the early Coca-Cola strategy: be an arms length from a consumers need. Simply, the more ubiquitous the distribution, the better you serve the consumer. We are definitely increasing our distribution base. In the last year alone, weve opened 3, 000 new doors, Christian bookstores, that were serving not only our faith-based fare but also appropriate all-audience, family and kids titles. The consumer dynamics in this country continue to evolve, and we are really pushing into high-end stores where people have money. HMR: Is Fox interested in working with Starbucks to distribute titles? Dunn: I dont have much to say about that. I believe Starbucks has talked with everybody in town. There are different levels of interest and different projects among the studios. Starbucks clearly attracts an upscale consumer with a certain level of taste, and that is very attractive. HMR: What kind of a second half of 2006 can we expect in home video? Dunn: We see a growth level of about 5% compared to last year. The strength of the product is really solid and complementary to auto recovery services consumer. For instance, this year there are three very strong family movies Ice Age: The Meltdown, Cars and Over the Hedge compared to one last year, Madagascar. There was no Devil Wears Prada last year with a female-skewing demo yet also appealing to men. The moviegoing audience is responding.