Korea seems to be the most progressive in terms of foreign countries getting their films on Blu-ray. I'm sure Israel will show signs at some point, but no news yet. I haven't seen Ushpizin. Actually, I don't like what few Israeli movies I've seen. Amos Gitai is probably the most acclaimed Israeli film maker, and while I can appreciate his work on an artistic level, I have real problems with films like Kippur and Kadosh. I also didn't like Time of Favor. But I can tell there is ever-increasing quality there, so I will keep watching.
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