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News
NYT: Apple and Fox Working New iTunes Deal
Sunday, December 2nd, 2007 at 3:00 PM - by John Martellaro
The movies studios are cautious about offending Wal-Mart and Target with low iTunes movie prices. As a result, one studio, Fox, is considering a new deal with Apple, according to the New York Times on Monday. A new, premium DVD would have a licensed iTunes ready copy included, and Fox gets to charge more for iTunes movies.
According to Richard Greenfield, a Pali Research analyst, Apple has relented a little on the pricing for iTunes movies from Fox. This could open the door to the next step, premium DVDs sold with a copy of the movie that can be legally copied to iTunes.
The result is that both sides win. Fox get to raise their prices at iTunes, avoid angering their distribution partners, and DVDs that have a legal copy of the movie for iTunes would have a surcharge of US$3 or $4.
With so much momentum in the industry right now on the part of the studios and networks to go their own way and control their pricing, this compromise could be something that not only Apple and the movie makers can digest, but gives the customer something they want as well -- a DVD that’s legal to copy into iTunes. Whether the other studios will also work with Apple in this way remains to be seen.
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