A lot of MVM's major franchises (including Fate and the Monogatari series) are Sony-owned properties, so I can absolutely see the room for competition dwindling if those return to the Sony mothership.
Looking into my crystal ball, I'd say MVM possibly has a finite lifespan anyway, it'll all depend on how long the owner wants to keep it going, but the company is very healthy financially and has a firm grip of it's catalogue. However I think Mr Allen will have an eye on retirement in the not too distant future. Anime Ltd has an alarming directors loan outstanding (doubling in the last year well into 6 digits) which is not a healthy sign at all. If they do survive, it'll likely be on their Gundam franchise deal, cheaper older licenses and prestige films like Your Name, which they are very good at. However with Shinkai's films all available on Netflix and the majority of the company's licenses sold to All 4, they'll need more than Screen Anime to keep going.
Physical releases are on the decline in the light of streaming services anyway, with Disney already halting production on 4K Fox distribution in order to increase subscribers to their streaming platforms.
So long term (say 10 years) my guess is we'll be seeing almost all physical releases coming through Manga Entertainment/Funimation, with streaming services like Netflix competing by creating their own IP, which has already started with the likes of Eden. So not only will anime distribution change, the nature of the medium itself will become globalised and more inclusive in a bid to build it into an even bigger juggernaut - like Robert Frazer says, $1 billion would have been unthinkable even 20 years ago. But with manga books outselling US comics, it seems the future has a very Japanese feel to it.
