The moral of that story: don't make straight to dvd movies.
Digital is just another platform, just like reel to reel tape, VHS, beta, laser disc, dvd, blu-ray.
But there's more profit in it since there's no warehousing and shipping, just servers. People still buy blu-ray though, it just usually comes with a digital version as well.
He's making excuses. Sour grapes.
The movie business is good enough for new outlets to be jumping INTO it. Netflix, Amazon and others. He's just a crappy moviemaker no one wants to fund.