Universal vs iTunes U.K.

Universal Pictures has launched a service in the U.K. to sell digital downloads of full-length movies with a DVD copy to complement the download, plunging the studio into competition with Apple's iTunes Music Store. iTunes as yet offers only one full-length film that Disney and Apple silently added in January of 2006, and which industry watchers suspect may be Apple's way of testing the waters before delving into widespread full-length film downloads. Starting April 10th, users of Universal Pictures' new service will be able to download two digital copies of selected movies, with one for a computer and one for a portable device, and will receive a DVD in the mail, according to a report from Reuters. The service operates on a download-to-own basis, and utilizes Microsoft's digital rights management technology to prevent consumers from duplicating the movies and distributing them. "It gives instant access, it gives portability and it gives much greater flexibility for the consumer to consume his product any way they want," Universal Pictures U.K. Chairman Eddie Cunningham said.

Lovefilm -- partner to Universal Pictures -- already offers a movie download service that serves up films from Warner Brothers on a rental basis, and Lovefilm CEO Mark Livingstone said he expects Warner Brothers and other Hollywood studios to follow Universal's lead in the download-to-own market, according to the report. Universal will kick off the service with a collection of 35 movies consisting of such titles as "King Kong," "Pride and Prejudice," and "Serenity." "King Kong" will sell for £20, which is comparable to the retail price, and the films will be accessible to consumers via America Online.

by MacNN Staff