Home run for Apple?

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.

by MacNN Staff