digital music/video
09/07/2006, 5:55pm, EDT
Thursday, September 7th
Apple, Hollywood "split the difference"
A new report says that Hollywood studios and Apple reached a compromise over the cost of digital movies by splitting the difference, and while the compromise could cost both sides millions of dollars, it may not be enough to reach more users. The report follows a slew of other reports that indicate that Apple is prepping its own digital movie service. Apple will reportedly charge $15 per movies, after the studios wanted to charge $20 and Apple wanted to charge $10, according to researchers at the Diffusion Group in Dallas. "The decision will likely cost both sides millions of dollars. Only 14% of broadband households would be interested in an iTunes movie service if the films cost $15. At $10, almost 1 in 4 homes show interest, TDG found in surveys. The firm's report on the viability of an iTunes service also suggests that Apple will hit a home run if, as AppleInsider speculates, it announces next week a wireless video accessory for the iPod to beam movies to the TV set," MarketWatch reports.
Filed under: industry
Other story tags: digital music/video
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If the service won't let me burn my own DVD, it's going to be DOA. My guess is that Apple is smart enough to know this. But for $15 if I am just getting the movie, not in DVD quality and not with all the extras, why would I buy it?
I want to own my music, I want to rent my movies.
I hope Apple makes a lot of money with this fad. For a while at least. Just as Dell sold a computer to everyone in the country, non user people will wonder. Why do I need such a device. Sales will plummet. However for investors, the first few years wil be great.
Need the streaming device for my cable (ipod shuffle model) random viewing experience in any room.
...and I believe that Apple knows that, and you will get exactly that.
While the focus is on purchase prices, no one is paying any attention to the man behind the curtain readying a movie RENTAL store.
While purchasing movies will most likely cost $14, you will probably be able to rent a movie, for, say, $5 or less, which a LOT more consumers will choose to do.
I mean, do the math:
14,000 users at $15 - 210,000 25,000 users at $10 - 250,000 or 75,000 users at $5 - 375,000
Who'd make more $$$, what would result in more repeat customers?
You got it!