No Jaybo - They sell originall DVDs for $2 there. That what regional code was for. In 2006 Time Warner was selling DVDs for 10 yuan ($1.25) while Twentieth Century Fox was planning to sell DVDs for 20-25 yuan (about $3). Both companies admitted that profit will be very low and main reason is to "combat" piracy (read: better small profit than nothing). At price of $1.25 they still admitted profit - insane. Competition is phony (collude) and we're being screwed. At least piracy levels the field there and forces big companies to sell at normal prices (good for the people).
All royalties and cost of printing comes to about $1 per audio CD. Rest of it (remaining $14) is a profit. Even if you double production cost for SACD it is $2 versus $30 selling price.
Nothing new to it - a little bit of cornflakes and cardboard box ends up magically $4. TV station started investigation and next day they became silent. I suspect they were threatened to loose all advertising.