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Information Technology News Apple iTunes movie rentals is the word
Information Technology News Apple iTunes movie rentals is the word | Apple iTunes movie rentals is the word |
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| by Stan Beer | |
| Wednesday, 19 July 2006 | |
  
Apple is said to have forged agreements with four major studios and is in talks with the others. Studios on board so far include Walt Disney, Universal Studios, Paramount Pictures, and Warner Bros. Under the deal, consumers will be able to download a rented date stamped movie online, which will have a limited playback life. Putting movies on iTunes as a rental only option was not the model that Apple CEO Steve Jobs was seeking but, if true, it shows that the combined might of the major Hollywood studios in resisting the US$9.99 movie purchases proposal was too much for him to fight. As noted on iTWire last month, Jobs' attempt to equate the music downloads model with movie downloads did not add up. Most consumers buy music tracks to keep permanently. With movies, most consumers either pay per view at cinemas or rent them. If the announcement goes ahead, iTunes will be in direct competition with video rental stores much like it is with music stores today. What is still not clear, however, is if like video stores, iTunes will be restricted to renting only movies that have finished their run on the big screens. It is unlikely that Hollywood will risk compromising its relationship with cinema chains. Another thing that is not clear is how Apple intends to make money on the movie rentals deal. The iTunes music is primarily used as a vehicle for driving iPod sales and, despite its dominance, does not make much money for Apple. In order to make the deal lucrative for Apple, the company will not be able to stick with the ultra thin margins that it does with the music store. {moscomment} |
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