“After conquering the digital music biz and taking the lead with TV shows online, Apple is looking to feature films,” Ben Fritz reports for Variety.

“The computer company is in active negotiations with most major studios to add movies to its iTunes Music Store, most likely by the end of the year, numerous sources confirm,” Fritz reports. “The main sticking point is price.”

Fritz reports. “Apple CEO Steve Jobs, who has been personally involved in the talks, initially proposed selling all films at a flat price of $9.99 — an offer the studios flatly rejected. ‘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.”

“Studio sources expect an iTunes moviestore to debut by the end of the year at the latest,” Fritz reports. “Many predict feature films will bow on iTunes at the same time the video iPod with a bigger screen more appropriate for films is launched. But Apple is remaining tight-lipped, not even telling potential studio partners about its hardware plans.”

Full article here.

[Thanks to MacDailyNews Reader “bjh” for the heads up.]

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Report: Apple in negotiations with movie studios; $9.99 feature films coming to iTunes soon? – June 19, 2006