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Two developments that greatly enhanced profitability in the 1980s were the development of low-cost videocassette recorders (VCRs), which allow films to be shown at home, and the government's relaxation of the decrees separating production from distribution. The studios first felt that videocassettes would weaken the theatrical market; the reverse was true, as viewers became more interested in movie entertainment in general. Of the latter, studio co-ownership of various theater circuits assured wider distribution of films.
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