One More Thing: We Have Signed Deals With The Major Movies Studios

By Max Brenn
22:20, January 7th 2008
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One More Thing: We Have Signed Deals With The Major Movies Studios

As MacWorld is just few days away, are you ready for another rumor? This time it is about iTunes and the major movies studios.

BusinessWeek reported that is very possible that during his keynote at MacWorld, Steve Jobs will announce that Apple has nailed down agreements with most of the big studio.

Apple has started to sell movies through its iTunes store in September 2006, but due to the lack of support from the movies studios, the business is going slowly, compared to the sales of digital music.

Also, as Business Week pointed out, Apple TV, another gadget launched during last year by Apple, has failed to attract the hype generated by iPod or iPhone.

According to the media reports, Steve Jobs has previously negotiated with the movie studios an iTunes deal, but the talks failed because of the pricing scheme unveiled by the Apple’s boss.

Now, sources close to the deals said for BusinessWeek that Apple is nearing deals with Warner Bros., Paramount Pictures, and Lionsgate to allow movie sales, rentals, or both through iTunes.

It seems like Steve Jobs has bowed down over the pricing scheme and the movies from these studios will sell for a price to the $17 wholesale price paid by other retailer. Also, BusinessWeek’s sources said Apple plans to charge $3.99 a pop for 24-hour rentals.

So far, iTunes sold close to 1 million movies on iTunes, compared with 100 million TV shows and 1 billion songs.



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