Apple puts pressure on rivals as it looks to sign deals with movie studios to sell new releases through its iTunes Store.By Andrew Wallenstein
LOS ANGELES (Hollywood Reporter) - Apple is expected to announce
Thursday that it has struck a deal with a wide array of movie studios
to sell new releases at its iTunes Store.
The move would allow a broad slate of top-shelf films to be offered
day-and-date with home video releases, which risks cannibalizing DVD
sales.
Such a move would also put significant pressure on iTunes
competitors ranging from Amazon's Unbox to Microsoft XBox Live
Marketplace.
The new arrangement is expected to involve Fox, Walt Disney Studios,
Warner Bros., Paramount, Universal, Sony Pictures, Lionsgate and New
Line. The deal does not include new titles from MGM, but does extend to
boutique firms such as Magnolia and Image Entertainment.
The deal comes on the heels of Apple's announcement in January that
it had signed all of the studios to movie rentals, with each title
costing just $3-$4 for consumers to access for a 30-day period. Movie
purchases, however, could cost as much as $15.
Apple hasn't moved as aggressively to date on film as it has in TV,
with most download-to-own devoted to older titles in studio libraries.
But Apple's success with those deals, which included MGM, Disney and
Paramount, likely encouraged studios to take the next step.
In March, Disney CEO Bob Iger publicly estimated that his company
had sold 4 million movies via iTunes since it became the first studio
to try download-to-own in 2006. A few major new releases already have
been made available day-and-date in recent weeks on iTunes, including
Fox's "Juno."
Thursday's announcement is expected to contain new data on the success of Apple's movie revenue to date.
The news follows Wednesday's disclosure by Time Warner CEO Jeffrey
Bewkes that Warner Bros. will experiment with video-on-demand releases
day-and-date with DVD.
The announcement originally was expected to be released earlier in
the week, perhaps timed to the fifth anniversary of iTunes, which was
Monday.
Apple did not respond to a request for comment.
Reuters/Hollywood Reporter
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