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Portfolio: Apple and HBO Close to Agreement

Monday, May 12th, 2008 at 2:45 PM - by

Time Warner's HBO and Apple are reported to have signed a deal to sell movies ad HBO programs on iTunes, according to a report from Condé Nast's Portfolio on Monday.

Josh Saul reported that Apple is close to announcing the deal based on HBO employees involved. The sources said Apple has agreed to a flexible price structure. For example, TV shows could cost more than Apple's traditional US$1.99.

The announcement is expected to come in a week or two.

The report fits in with Apple's traditional method for expanding the appeal of its devices, once piece at a time. Eventually, Apple TV would become more than the sum of its parts.

The HBO shows The Larry Sanders Show and Deadwood were cited as shows HBO wants to sell. Mr. Saul quoted an HBO insider: "We should have done this a long time ago."

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