I just re-read the story, and noticed that the cost calculations in the article are even worse than you write, from the article:

To store a digital master record of a movie costs about $12,514 a year, versus the $1,059 it costs to keep a conventional film master.

I believe that these are the costs the studios are being charged by third party companies. I also believe that the cost includes digitization of the master (or one would hope!) along with QA, redundant storage, and of course, profit margin. Still nuts, and somebody somewhere is making gobs of money.

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John <><