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Apple, Amazon to sell movies online

updated 10:45 am EDT, Wed September 6, 2006

Movies from Apple, Amazon

Both Amazon and Apple are expected to unveil new movie-downloading services in the coming weeks with online movie offerings from both services expected for sale at the same time as DVD versions of movies are released. According to The WSJ, Amazon has all the major Hollywood studios except Walt Disney Co. lined up to offer movies on its service, while Apple's iTunes has just one major studio, Disney, due to wrangling over pricing for movies. Called "Amazon Unbox," the internet retailer is expected to sell the bulk of its movies between $10 and $15; however, there could be a larger range along with the option to "rent" movies. Apple, however, has struggled to sign up studios: "Apple, meanwhile, plans to sell movies for just a handful of different prices, starting at $9.99 for catalog titles and going up to $14.99 for new releases.... Apple has been unable to sign up all of the studios in large part because they can't agree on price. Many studios want more than the $14.50 or so Apple is offering to studios as a wholesale price per movie so they can create similar or bigger margins than they get with physical DVDs."




by MacNN Staff

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  1. Peter Bonte

    Joined: Dec 1969

    0

    Price

    Max $9.99 higher is bull

  1. technocoy

    Joined: Dec 1969

    0

    did i mention....

    That I hate the greedy blood-sucking movie and music studios?

  1. mgpalma

    Joined: Dec 1969

    0

    RE: price

    I agree. Higher than $9.99 and I'd rather do Actual DVD + MactheRipper + Handbrake = 1GB movie accessible by Front Row.

    my .02

  1. Jeff Edsell

    Joined: Dec 1969

    0

    (Slaps forehead)

    "Many studios want more than the $14.50 or so Apple is offering to studios as a wholesale price per movie so they can create similar or bigger margins than they get with physical DVDs."

    Argh! None of them get it! "We only wanna do this if we're gonna make craploads more money."

    No! Look, ask the record companies who sell music and the networks who sell TV shows on iTMS. Do they make a lot of money per unit? No! But it costs almost nothing (or perhaps actually nothing) to provide their wares for sale on iTMS. In return, they get more people using their product, legally. More eyeballs. more mindshare. and they're "in" on something cool.

    Listen carefully, studio idiots: There is currently NO WAY to make craploads of money in the movie download business. (Nor will there be, unless we suddenly run out of the materials to make DVDs with, and they start costing $50 each.) But the landscape is changing, and it's essential to get in now -- you won't make much, but it won't cost you much. Just sign on already.

  1. purpleshorts

    Joined: Dec 1969

    0

    Prenup needed

    Now is when Apple's "victory" over the record labels on pricing shows its consequences. The movie guys see that if they go in for one fixed price, they can and will be held to it. Fixed prices are a frightening thing in a culture that expects quarterly gains. Apple can twist their arm after the marriage, as they can now twist Apples before it happens. What they need is a prenuptial agreement!

  1. bfalchuk

    Joined: Dec 1969

    0

    They'll never get it

    When will these media executives learn. They have to realize that there's a MASSIVE paradigm shift going on. If they keep with their old ways, their content will get pirated more and more. This is a chance to lead in the new paradigm, and make money (plenty of money), rather than getting robbed by pirates.

    The costs are cheaper than DVD for the studios, so there's really no reason to expect the same wholesale figures. They only have to produce the encoded version and upload it to Apple. That can't be more work than making the master file of a DVD burn. Then there's no product to press, print, ship, etc. There's also no time-lag. The moment they release it, people can buy it. There's no need to wait for it to get to the person's market, or to be out of stock. Just constant, immediate sales flow.

    Hey, Hollywood, WAKE UP. YOU'RE KILLING YOURSELVES!

  1. testudo

    Joined: Dec 1969

    0

    Bah!

    I don't mind price ranges. I don't care if 'new' movies go for higher then others. (I believe the same should be true for music). However, older catalog items should sell for a lot less. Paying $10 for a 30 year old B-movie is just ridiculous.

  1. ClevelandAdv

    Joined: Dec 1969

    0

    Ignorant

    I have never seen companies as ignorant about their customers than the music and movie industries (accept maybe M$). Don't make it easy to get, don't give the customer what they wantl. Don't price it so you sell more. Don't create compelling content - keep pumping out the same old c*** and blame pirating for your sales slumps.

  1. redpod

    Joined: Dec 1969

    0

    DVD koisks

    I don't know if I am going to download DVD-quality movies for an hour or more where DVD kiosks are available (that I found out recently).

    I would want to sacrifice my bandwidth for some other stuff most of the time where it's used for phone, skype, video... etc.

    DVD kiosks are available for $1 a night per new movie only (redbox.com) with all the DVD features and stuff. The best thing is that there are always free rental codes from the web for free movies... downloading doesn't seem to attract me anymore... just my 2c.

  1. MarcoM

    Joined: Dec 1969

    0

    regions?

    How will this work internationally? region 1 or 2 or 3? I am sure this will be a USA only for a while. Or does it matter?

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