As to our corporate bosses in New York, it's not my place to say their view is incorrect. But while we embrace new technologies, we do so with deliberation, caution and forethought.

Home video gave us a cushion that made it easier to grow. Now that it has leveled off, we don't have the cushion. It's very hard to grow profitability when you are at capacity.

look at other alternatives.

We don't have any way to pass it on.

It helps us in that competitive environment to have the kind of money that will enable us to go out there and spend what's required to make our movies ... and to have the distribution capability on a worldwide basis to exploit the product most efficiently.

Bruce and his entire Television Group team represent an unrivaled television operation that is head and shoulders above its competition, The Television Group is both a significant contributor to the overall profitability of our Company and an invaluable strategic partner for the other Warner Bros. divisions.