Slash LaneNewsCorp's Twentieth Century Fox is close to striking a deal with Apple to offer digital copies of its major motion pictures through iTunes, according to one Wall Street analyst.
The proposed deal, which would end a considerable standoff between Apple and nearly all Hollywood studios over the digital sale of movies, has reportedly been helped by the iTunes operator's sudden willingness to increase the wholesale price of new flicks beyond $15.
The Cupertino-based company currently prices new releases at $12.99 when pre-ordered through iTunes during their first week of availability, and $14.99 thereafter. Older library titles sell for $9.99.
Thus far, however, Apple has only been able to court the likes of Disney to offer its entire catalog at those prices, while MGM, Paramount and independent film studio Lionsgate have agreed to just partial distribution deals.
In his posting, Greenfield refers to an emerging desire — presumably among studios — to sell premium priced DVDs that include a digital copy of a movie for an increased cost of $3 to $4. This, along with growing piracy concerns and the emergence of Wal-Mart's own digital download service, is likely to influence studios into finally embracing an Apple deal, he said.
"While we suspect FOX will be the first studio other than Disney to fully embrace iTunes, we believe others will quickly follow suit," the analyst wrote, explaining that the major fear for Hollywood studios is proving to Wal-Mart and other physical DVD retailers that a lower wholesale price on digital copies is warranted relative to DVDs.
He added that, "the last thing the movie industry needs is pressure on new release DVD wholesale pricing, although the studios probably make more money on an iTunes wholesale of $15-plus, than most DVDs at $18 due to returns."
It should be noted that talks between NewsCorp's Twentieth Century Fox and Apple date back over a year.
Malcolm Owen
Wesley Hilliard
William Gallagher
Christine McKee
41 Comments
... has reportedly been helped by the iTunes operator's sudden willingness to increase the wholesale price of new flicks beyond $15...
If Apple does indeed offer movies for more than $15, then their only plan is to prove to these ass-wads that no one will ever pay that much.
I have never bought a movie from iTunes because I think paying $10 for a movie that lacks close enough quality to a dvd as well as no discrete surround tracks isn't worth it for me. Now I would definitely use iTunes for rentals (as long as they don't cost more than evil Blockbuster).
These studios are ridiculous. $15 or more for an electronic file is robbery.
He added that, "the last thing the movie industry needs is pressure on new release DVD wholesale pricing
TRANSLATED: "We don't want Wal-Mart to get butt-hurt and threaten to take all our movies off the shelf"
I am glad to see other studios coming on board.
I'm still not interested at those prices, however. Maybe an occasional spur-of-the-moment thing.
I think I would most want to rent like I do now with NetFlicks. For special titles, I like to own the DVD with its case and transportability. If the iTunes purchase price was significantly cheaper maybe--maybe I would buy from the site, but this isn't headded there...
It would be nice to see more movies, but I can't see sales going that well with higher pricing and the same resolution.
The only thing I can see justfiying higher prices would be quality that is full DVD or better (including surround sound). And the other features that DVD's have like bonus extras, multiple audio tracks, and closed captioning.
Right now, a download of a movie gives you less than buying the DVD. The download SHOULD be cheaper since you're getting less.
And what about rentals? A decently priced rental program, particularly a subscription comparable to netflix, would be very appealing.
Who in their right mind would pay more than $15 for a VHS-quality copy of a film?