Evil market control. Movies typically run in foreign theators a few months behind their domestic release, and likewise the domestic home video release hits the streets much sooner then the foreign home video release--or at least that's how it was back in the VHS age. This is why different video formats (i.e. NTSC and PAL) were established in the first place.
These days, Hollywood release dates around the globe differ by at most only a few weeks. The only remaining advantage behind this evil scheme is that whenever a foreign/non-Hollywood film is a hit, such as, oh say, "The Ring," or "Hero," it gives Hollywood time to exploit the film as either an American remake or an edited adaption, as the consumer's expensive alternative to waiting for a U.S. edition would be to purchase foreign equipment. (I never did get around to buying a PAL VCR...)
The result of this is usually that the American studio buys up the exclusive North American distribution rights to a foreign film, thus making it essentially illegal to sell the foreign edition in the U.S. and really damn hard to find one anyway, leaving only the inferior American DVD to choose from. (I get pissed whenever I see "Quinton Tarentino Presents" on the cover of a foreign film which he had absolutely nothing to do with the production of.)
Another horrible side-effect is that there are literally thousands of wonderful foreign films which will never be exported to foreign regions, just because they aren't as massively marketable in America as Chinese "Art Films."
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