Report: Apple close to winning over studios
Apparently, Apple is willing to make concessions to the film industry to bolster iTunes' lackluster movie offerings.
BusinessWeek is reporting that Apple is close to signing distribution deals with most of the top movie studios that would give Apple access to newly released films.
The Financial Times reported last month that Apple has already signed an agreement with Twentieth Century Fox. BusinessWeek now says the company is nearing deals with Warner Bros., Paramount Pictures, and Lionsgate. The magazine suggested that some of the deals may be announced at the Macworld conference, which starts January 14.
While Apple has dominated music, it's been slow going in video.
Apple CEO Steve Jobs has had to overcome fears in Hollywood that the movie industry could end up like the music industry: handing over too much control to Jobs. Perhaps the best known example of this is the music industry's inability to get Jobs to allow flexible pricing for songs.
But according to BusinessWeek, Jobs is winning over the studios by sweetening the pot. Jobs once capped the price he was willing to pay for each movie sold through iTunes at $14, the magazine reported. He has now agreed to pay closer to the $17 wholesale price that Wal-Mart and other physical retailers pay.
Up until this point, iTunes hasn't offered iPod owners, with the video-equipped devices, much in the way of newly released moves. On iTunes, one can find new releases from Disney for $14.99 and older titles from other studios for $9.99. BusinessWeek is also reporting that Apple plans to charge $3.99 for 24-hour rentals.
In addition to the trouble with movie studios, at least one major TV network has also balked selling through iTunes. Late last year, NBC Universal announced that it would stop offering digital downloads via the iTunes store.
Greg Sandoval covers media and digital entertainment for CNET News. He is a former reporter for The Washington Post and the Los Angeles Times. E-mail Greg, or follow him on Twitter at http://twitter.com/sandoCNET.
of$9.99 for a downloaded movie. Even at that price I am not
buying many. Maybe more equitable situation would be to lower
the price of physical media movies to 9 or 10 bucks.
Interesting that the movie studios and Apple are allowing
journalists into the negotiation meetings, and/or they are happy
with the notes being leaked.
of$9.99 for a downloaded movie. Even at that price I am not
buying many. Maybe more equitable situation would be to lower
the price of physical media movies to 9 or 10 bucks.
Interesting that the movie studios and Apple are allowing
journalists into the negotiation meetings, and/or they are happy
with the notes being leaked.
Well, first they should start producing worthwhile movies that I'd actually want to buy, but that's another issue.
It's the same movie. Except it's cheaper to download.
What's the difference?
Well, first they should start producing worthwhile movies that I'd actually want to buy, but that's another issue.
It's the same movie. Except it's cheaper to download.
What's the difference?
and saves $ without packaging or trucking costs, downloads
SHOULD be cheaper than DVDs.
and saves $ without packaging or trucking costs, downloads
SHOULD be cheaper than DVDs.
involve physical media, production costs (printing, burning),
doesn't have to be shipped, inventoried, or occupy a store shelf,
there are cost savings that should result in an electronic movie
that costs half of what the physical version does.
In addition, a downloaded movie on iTunes has a resolution
significantly less than that of a standard DVD. It also lacks
surround sound (as iTunes is stereo, not Dolby digital or dts).
Do the studios think consumers are stupid? They're essentially
encouraging people to go into the Rent-Rip-Return model (via
Blockbuster or Netflix) and get movies for pennies.
A purchased movie on iTunes should not exceed 9.99, and even
that is too expensive.
For rentals, $4 is fine.
- ridiculous pricing scheme
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by ddanckaert
January 8, 2008 6:59 AM PST
- As noted previously, since an electronic download doesn't
-
Reply to this comment
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(18 Comments)involve physical media, production costs (printing, burning),
doesn't have to be shipped, inventoried, or occupy a store shelf,
there are cost savings that should result in an electronic movie
that costs half of what the physical version does.
In addition, a downloaded movie on iTunes has a resolution
significantly less than that of a standard DVD. It also lacks
surround sound (as iTunes is stereo, not Dolby digital or dts).
Do the studios think consumers are stupid? They're essentially
encouraging people to go into the Rent-Rip-Return model (via
Blockbuster or Netflix) and get movies for pennies.
A purchased movie on iTunes should not exceed 9.99, and even
that is too expensive.
For rentals, $4 is fine.