“Consumers have been willing to spend 99 cents to buy Shakira’s ‘Hips Don’t Lie’ or $1.99 for an episode of ‘Desperate Housewives’ from iTunes,” Laura M. Holson and Eduardo Porter report for The New York Times. “Now Steven P. Jobs is betting they will also pay $9.99 to download ‘The Godfather’ to play on their iPods.”
“For weeks, Apple Computer has been talking with executives at all the major studios — including the Walt Disney Company, 20th Century Fox, Warner Brothers and Universal Studios — about adding movies to its popular iTunes music store, several people involved in the negotiations said,” Holson and Porter report.
“Mr. Jobs, who is Apple’s chief executive, has been participating in the negotiations and telling studio executives in Los Angeles that he wants to have a deal in place by the fall, people involved in the negotiations said,”: Holson and Porter report. “Disney, which was the first studio to put some TV shows (like “Lost” and “Desperate Housewives”) on iTunes, is also expected to be the first to put some movies on Apple’s online service, the people involved in the talks said.”
“People involved in the negotiations said there were several potential snags, including fears about piracy and Mr. Jobs’s proposal to charge a flat price of $9.99 for movies already sold on DVD,” Holson and Porter report. “Under Mr. Jobs’s proposed plan, there will be several prices for movies, depending on when they have their debut on iTunes. The prices have not yet been determined, but some studios are worried about releasing movies too close to their theatrical release dates.”
“The reports of Apple’s discussions with movie studios have renewed speculation that Apple is preparing to offer a living room-oriented entertainment device later this year, in time for the Christmas season,” Holson and Porter report.
Full article here.
“Some Hollywood studios have also been talking to Microsoft about licensing movies for use with the company’s upcoming portable digital device, the Wall Street Journal said. The company hopes to launch an iPod competitor, which could hit the market as soon as the fourth quarter of this year,” Reuters reports.
Full article here.
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Report: Movie studios flatly reject Apples’ proposed $9.99 pricing for feature films via iTunes – June 19, 2006
Report: Apple in negotiations with movie studios; $9.99 feature films coming to iTunes soon? – June 19, 2006