iTunes feature film service by year\'s end?
A version of Apple Computer's iTunes Music Store that will serve up feature film downloads should debut by the end of the year at the latest, sources within the film industry told Variety.com.
Apple chief executive Steve Jobs is reported to have been involved in the talks, initially proposing to sell 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 told Variety.
Apple has historically charged a standard fee for its online downloads, such as 99 cents for music tracks and $1.99 for TV shows.
According to the report, there are signs Apple may bend and allow price points ranging from $9.99 to $19.99 in order to differentiate older titles from new releases.
Nevertheless, the report states that sources within the film industry expect "an iTunes movie store to debut by the end of the year at the latest."
"Every studio wants to have broad distribution in digital, and we all know that having Apple as part of that is very, very important," a studio exec said.
Analysts also believe it is only a matter of time before Apple introduces film downloads through its iTunes service. However, Gene Munster, an analyst for PiperJaffray, says the company doesn't see the rush.
"Ultimately, we expect that iTunes will offer feature length movies on iTunes, but we do not believe this is a top priority for the company at this time," Munster recently told clients. He notes that consumers can easily find any movie they want on DVD or on-demand.
"Apple has focused on TV shows because unlike full length movies, there is a clear value proposition to the consumer and the networks in offering TV shows," the analyst said. "For a consumer, if you miss an episode (or entire season) of a show, iTunes is the only way to see it unless you want to wait until the episode comes out on DVD. The benefit to the networks is that this is a new way to monetize original TV content."
55 Comments
Who's gonna pay 20 bucks to download a movie from iTunes, when you can spend just as much and get a DVD with features, AND the ability to rip it with HandBrake and get much higher quality?
I hope we'll see rental rather than purchase to own when it comes to feature films. Unlike with music, renting movies is a great business. I just want to rent a movie for a week or so for say $1-4, see it and then trash it. That would really compete with illegal torrent activity.
How are the other download services doing? I haven't heard.
The movie studios are thinking too much about new releases and not enough about their old library. Someone who might go for "Casablanca" (or any other older movie) at a good price isn't going to pay even $9.99 - not when it shoes up in the bargain bins at $5.99.
While I might end up using the service now and then I'll still be hitting the bargain bins and used DVD stores for reasonably priced movies - mainly because I tend to stock up on a few before heading out on a business trip.
The movie studios are thinking too much about new releases and not enough about their old library. Someone who might go for "Casablanca" (or any other older movie) at a good price isn't going to pay even $9.99 - not when it shoes up in the bargain bins at $5.99.
I agree - flex prices may be in order, given that movies cost more than CD's (on average), but everyone knows those oldies aren't worth that much. I'll bet Steve will bend on this one.
This is a really obvious prediction, but I'm seeing "next-gen iPod" (the REAL iPod video) this fall...
8) 8)
Anybody want to guess at possible screen size??