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News
Apple Working to Add Movies to iTunes
Sunday, June 18th, 2006 at 3:00 PM - by Jeff Gamet
Apple is currently negotiating with the major studios to bring feature length movies to the iTunes Music Store before the end of 2006. According to Forbes, the studios are willing to work with Apple, but are unhappy with the proposed US$9.99 per movie flat fee.
Apple offers a flat fee system for music downloads: $0.99 per track. It want to offer a similar system for movies. The studios, however, want to be able to charge more for new releases and more popular titles. One studio executive commented "We can't be put in a position where we lose the ability to price our most popular content higher than less popular stuff."
Despite pressure from the music industry, Apple has so far refused to allow for a sliding scale for song prices. But insiders think Apple may be more flexible when it comes to movie prices, allowing for a $9.99 to $19.99 price scale.
Rumors are floating through the industry that Apple is working on a larger format iPod more suitable for longer shows. A simultaneous iPod and movie announcement would be a good move for Apple and the studios, so it's likely they will reach a pricing agreement in time for a new iPod product launch.
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