Apple and Amazon are both negotiating with movie studios in an effort to strike deals to allow consumers to download full-length films. Both companies are being secretive about their negotiations, according to Reuters.

Movie downloads are seen as the next phase in the multimedia download market, and Apple and Amazon both want to be on the leading edge in that arena. Movie studios, however, don't seem to be as willing to deals as music and TV executives were.

DVDs and pay television make up a big part of movie returns, and studios don't want to risk losing that revenue. The threat of movie piracy also raises concerns.

TV broadcasters have already jumped on board and have shown that downloading shows can be a successful venture thanks to the iTunes Music Store. Comedy Central's South Park has already sold over a million downloads at US$1.99 a piece.

Movie studios apparently are willing to negotiate, but aren't sure how to structure pricing. Some executives think movie downloads should cost less than their DVD counterparts, and some think pricing should be the same.

One company that may ultimately play a significant role in movie pricing is Wal-Mart. One studio executive commented "The studios don't want to figure [pricing] out yet. Not until digital downloads make real money, or Wal-Mart wants to get into that business."

Rumors have surfaced that Apple is working on a wide-screen version of the video capable iPod. If so, the company needs movies for customers to download, which would offer studio another potentially lucrative distribution avenue. It's likely that Apple would announce its new iPod and movie download service at the same time.

Apple and Amazon were not available for comment.