My talk today involves developments that will affect the other two economic factors mentioned, equipment costs and operating costs. The recent development and introduction of the Sony U-Matic videocassette equipment is the key factor in reducing these costs. At $995, the video cassette player is less costly than any previously available color videotape equipment, while in terms of picture quality it is more nearly comparable to open-reel machines in the $4,000 to $8,000 price range. These cost and quality considerations plus the very enthusiastic acceptance that this format has received to date tell me that the 3/4 11 cassette will substantially replace 16 mm film as the principal duplication and distribution medium for entertainment software in our industry. This means that instead of tying up a $20,000 film chain running a $400 print that becomes unusable after 15 showings to program a single channel, the cable operator will be able to offer multiple channel programming using $995 decks with per-run print costs measured in pennies rather than dollars.