James Delahunty
19 Jun 2006 13:20
Sources within the film industry have said that a version of Apple Computer Inc.'s iTunes store that will sell full length feature films should debut by the end of the year at the latest. Not a lot of new information has been made available on Apple's push to start selling major Hollywood movies, but it is believed that the company is still locked in a debate over pricing.
It was reported that Apple CEO Steve Jobs approached the studios with an offer to sell movies for a flat $9.99 each. As expected, this proposal was trashed immediately by the movie studios. "We can't be put in a position where we lose the ability to price our most popular content higher than less popular stuff," said a studio exec close to the negotiations to Variety.
Apple currently sells music downloads for 99c each, and has argued with music labels that propose a variable pricing system instead. Additionally the company also sells TV shows for $1.99 each. It is expected that Apple will be forced to price movies between $9.99 and $19.99, where more popular material will cost more of course.
"Every studio wants to have broad distribution in digital, and we all know that having Apple as part of that is very, very important," a studio exec said. The price of a movie download and what exactly you can do with them (like whether or not they can be transfered to a DVD and played on all DVD-Video players) will determine the level of success iTunes can hope for. Once again, the entertainment industry will be selling content on the Internet where it is also available for free through other means. Overpricing won't convince people to use a legal alternative.
Source:
Apple Insider