The studios and directors did not allow this company to edit their work and resell it, its simple, what don't you get about copyright infringement?
That wasn't my point. My point was that the studios missed an opportunity. With very few enhancements, the technology would allow for DVD, CD etc. players to skip over offending scenes or lyrics. This would allow the studios --the copyright holders -- to sell more product and control the quality of the edits.
Bingo.
But we all know, this is NOT about the money. Never has been.