And the home video market is nowhere near dead. What a strange thing to say. It’s pivoted to digitally-owned movies, sure. But dead? No way. In fact, it’s stronger than ever.
A lot of stories came out last year about how the home video market topped $25 billion. I’m guessing that’s what you’re referring to. It’s important to note, though, that the vast majority of that is in subscriptions to streaming services. Digital sales are rising, but not enough to offset the decline in purchases overall which dropped over 9% from 2018 and only accounted for $6 billion out of the aforementioned $25 billion (disc sales barely topped $3 billion).
https://variety.com/2020/digital/news/2019-us-home-entertainment-market-25-billion-1203463878/
At this point, the motivation to release the original films would lie solely in courting new subscribers to Disney+. The question, then, is how many new subscribers would they actually attract that hadn’t already signed up for the existing versions of the Star Wars movies or The Mandalorian or The Clone Wars, and is that enough to justify the cost of restoring the original films and potentially invoking the wrath of George Lucas? The answer, as ever, is probably not.