Yes, all DVDs for the most part are profitable, with a few exceptions. All DVDs get discounted after their sales dwindle....thats ALL DVDs.
I could go and pick up a copy of Transformers on DVD now for probably £5 or so, nearly a third of the price it came out for. Does that mean its not made a profit? Cause as of July 12th, in the USA alone, that DVD had made over $282mil. But of course, it must have been a flop cause its been reduced in price.
You really dont know anything about retail, do you.