Report: Movie studios flatly reject Apples’ proposed $9.99 pricing for feature films via iTunes

“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

33 Comments

  1. Who freaking cares whether it’s $9.99 or $29.99? I don’t want to buy my own personal copy of every movie I watch. And until Apple or anybody comes up with a laptop with enough storage to save an entire movie collection, this is just Such a Dumb Idea. I just want to pay a monthly fee like I do on NetFlix to watch all the movies I want. And if I ever do decide to build up my own personal movie collection, it sure as hell won’t be 320×240 copy-limited versions.

  2. give the movie studios what they want. multiple pricing.
    9.99 for new releases and 5.99 for older movies.

    for a low resolution movie like the ones they sell on itunes, they
    should be happy people still buy them.

  3. I don’t mind having a library of movies, as long as the quality is high enough to replace DVDs.
    Of course, download times for such files might be too much for the average consumer and studios clearly would not want DVD quality copies that they will say would hurt their DVD sales and lead to piracy. Nevermind that with the correct pricepoint they could have a similar or higher profit margin on downloads compared to DVDs. Or that iTMS has shown that the right pricepoint will provide consumers incentive not to pirate because it is simpler to pay and avoid the pain of P2P (truncated files, poor file quality, viruses, spyware, and adware for Windows users, long, painful downloads, etc). Of course, the real reason is that they want to sell you the DVD and the download. The DVD for home viewing on the TV and, because ripping of DRM’d DVD illegal, the download your portable copy.

    I don’t really see the size of laptop HDs as being an impediment. Leave the entire collection on your home server and put 10 on your laptop for the trip.

  4. If it stays the same as the current video, I feel $9.99 is close or slightly too much for 320 x 240 high compression video. Especially when I can pay $15-$20 for 720 x 480 DVD or a hair more for 1080i HD blue-ray or HD-DVD these days. I personnally think $6.99 is closer to the value it should be.

  5. I agree with Jeffrey. Since I bought an HDTV last year, sd broadcasts and dvd’s are not as compelling to watch anymore. I have stopped buying dvds (rent only). Waiting for HD-DVD or Blu-Ray. I will not get anything unless its highdef…..

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