If they think they will sell 1,000 or even 500 copies (or more, of course), it's better to replicate the discs, rather than duplicate them (DVD-R).
Replication is done by creating a glass master, which isn't cheap. Once the glass master is created, the cost per-unit is much cheaper than if you duplicated each disc separately. It's also a far more stable disc, in the end, which is good for the consumer. As long as you create a decent number of discs (maybe 1,000), then the up-front expense of the glass master is worth it. Otherwise, it's not.
Warner Archives has done this before. It's not the first time I've seen them sell replicated discs, which aren't really "on demand." And of course, they have to store them somewhere until they sell off the stock, so that was the reason for this on-demand business model in the first place. They could do small runs or one-offs on movies without having to store product in a big warehouse.
"Jaws is the Citizen Kane of movies."
blocked: logan2, Diamonds3, Hamilton22
Updated On: 2/26/14 at 06:59 AM