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Monday, March 27, 2006, 07:00 am PT (10:00 am ET)

Apple pushing higher-margin, DVD-length video downloads

Apple Computer is exploring new ways to market and sell higher-margin videos bundles through its iTunes Music Store and have recently started to experiment with DVD-length music video downloads.

In a first, iTunes is selling all the clips from Tori Amos' "Fade to Red" — a 21-song music video collection released on DVD via Rhino Entertainment — as individual downloads for $1.99 each or as a complete package for $24.99, notes Billboard.

While the iTunes Music Store has been steadily selling one-off music videos for $1.99 apiece since late last year, the Tori Amos offer is reportedly part of a larger video bundling push by Apple that includes iTunes-only "video albums" and "vingles." The former usually includes six to seven videos from an artist that have not been released as physical collections, while the later is a bundled offer of a video and its corresponding audio single.

The video collection trend on iTunes will continue to grow, according to Eddie Cue, Apple's Vice President of Applications. Cue says some of the most exciting opportunities involve products that have no equivalent in the physical world. "We are taking advantage of the medium," he said. "This is the stuff that you can only do in digital music."

Cue notes that vingles, which take advantage of demand for hit songs by selling the video and a music download together for $1.99, could play an increasing role in Apple's digital music business.

"Over time there is no reason why we can't have a vingle for every video," He said. "Not every song has a video, but every video has a song."