tech - hawg
Friday, September 01, 2006
  Apple to offer movies downloads by mid-September
Apple may begin to give iTuners the ability to download full length feature films around mid-September. The trick is, it looks like they may be able to get a pretty nice discount on the wholesale price of these movies. A pretty nice discount meaning $14.99 for a brand new movie in this case. This currently undercuts the discount that WalMart gets and for this, they aren't happy. How are the studios going to play this though? If they give WalMart a similar discount, there goes hundreds of millions of dollars in lost revenue. But if they don't appease WalMart, will WalMart have the cajones to apply some sort of pressure on the movie industry? Maybe by possibly not releasing certain titles or by delaying the release of others on their shelves? Who knows. I think Business Week is making too big of a deal out of this. Sure iTunes will be selling movies at a cheaper price than WalMart but not everyone has made the full transition into the digital age just yet. I don't think that people will all of a sudden stop buying DVDs from Walmart and to just start downloading them and burning them to a DVD. Not everyone has a video iPod yet so WalMart still has time. On the other side of that coin though is the fact that a lot of people will be making the move to downloading their movies over the net over the next few years and when they do, who's going to be the flagship property that has a rep for letting their customers download awesome quality movies at affordable prices? If Apple gets it's way, that property could be iTunes and that is what WalMart shouldn't want. Either way, I still want to be able to download a new release the day it comes out in theaters. I won't get my wish anytime in the foreseeable future but I know that day is coming. Sooner or later.
 
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