“When Steve Jobs unveiled the much-anticipated video iPod in San Jose on Oct. 12, it was immediately clear that Apple Computer’s latest gizmo will not transform movies the way the iPod and iTunes have revolutionized music. At least not right away,” Peter Burrows writes for BusinessWeek. “There were no movie moguls on hand to help Jobs unveil an online store for full-length features. Selling movie downloads is a lot more complicated than selling singles and albums. Studio bosses continue to fret about piracy, and they are loath to give up a distribution model that allows them to release the same movie over and over in different formats.
“That’s not to say Apple hasn’t again stolen a march on its rivals. Along with the video iPod, the company unveiled a slimmer iMac with a remote control that allows people to use the new computer as a home entertainment appliance. And the Disney deal could lead other TV studios to offer content for $1.99. ‘Only Apple could have brought this together,’ says Van Baker, an analyst with Gartner Inc.,” Burrows writes. “Still, the day when movies will be downloaded to iPods likely remains far off.”
“Jobs is well aware of the hurdles, which explains why the new iPod is a baby step to get a foothold without spooking the studios. But he may be betting that Hollywood will soon be ready to cut a deal. Disney’s willingness to let Apple sell its TV shows is a sign that compromise may be in the air,” Burrows writes.
Full article here.
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