Neil Hughes
Ahead of the anticipated launch of a new Apple TV with support for ultra-high resolution 4K video content, Apple is said to be caught in a contract dispute with movie studios, who want to see iTunes prices for 4K films exceed $20.
Apple typically charges around $19.99 for new high-definition movie releases, available in up to a 1080p resolution. But for the jump to 4K, studios want to see Apple charge $5 to $10 more, bringing prices potentially as high as $30 for new releases, according to The Wall Street Journal.
The ongoing negotiations are likely in the midst of crunch time, as Apple is gearing up for a Sept. 12 event where the company is expected to announce a new Apple TV with 4K and HDR, as well as an "iPhone 8" and "iPhone 7s" lineup, and new Apple Watch with LTE connectivity.
On the technical side, Apple has been gearing up to begin providing 4K content through iTunes. But what it will charge for that content remains a mystery.
Not all studios are pushing for higher prices, however. While one executive who spoke with the Journal said they wouldn't tell Apple how to price their iPad lineup, a separate unnamed studio representative noted that Netflix subscribers already receive streaming 4K content for $12 per month, making a $30 movie purchase on iTunes a tough sell.
Earlier this month, lines of code discovered in Apple's HomePod firmware revealed the tech giant is working on a next-generation Apple TV that boasts support for 4K video and HDR in both 10-bit and Dolby Vision formats. The information fell in line with a February rumor claiming the hardware refresh carries the codename "J105," a designation most recently seen in the seventh iOS 11 beta release.
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109 Comments
People still buy movies?
This move by Apple makes sense. Sales of movies on iTunes have been declining quarter after quarter for a while now. This would be a great way to spur on sales.
This is a two-headed coin. While paying less for media content is nice for consumers (and Apple will profit more if iTunes is the go-to for movies) it may discourage content creators investment in quality films and music. It's already tough for music performers and writers to make a living from streaming songs, and studios may suffer from ever-cheaper movie streaming as well with big-budget productions making less and less financial sense, especially as theater visits are declining.
The problem they will have is with Apple having a least a two-prong approach to forcing their way, reduce old-line studios and production houses profits by demanding lower prices while trumpeting the benefit to consumers (!), and at the same time using some of the Apple $B's to start their own shows and movies to compete with and replace them. IMO bending now would seem to play into Apple's plans to be the major force in video too just as they were in music.
Once an art has become a business no disgusting than politics.
I was hoping that Apple would reveal an Apple Movies subscription model like Apple Music at the forthcoming event when the 4K ATV is released.
Do consumers really want to own movies anymore?
Surely music subscription services like Spotify and Apple Music have reduced the amount of music piracy significantly because the subscription is reasonably priced.
The same model for movies would surely help reduce movie piracy.