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DVD Movies With an iTunes Copy: Worth More?
By Saul Hansell
Richard Greenfield, the Pali Research analyst, writes this morning that he hears that the long standoff between Apple and Hollywood over movie downloads may be heading for a resolution. As of right now, Disney, of which Steve Jobs is a director and large shareholder, sells movies through the iTunes Store, and the other major studios don’t. The issue has been that the studios want to charge more money for downloads than Mr. Jobs thinks they are worth. The studios also worry about offending Wal-Mart and Target, which are by far their largest distributors. (The report is here, but requires registration to see.)
Mr. Greenfield says that at least one studio, News Corporation’s Twentieth Century Fox, is working on a deal to start selling its new releases and back titles through iTunes starting early next year. He cites two reasons for the change: Apple has relented and has agreed to a higher wholesale price for movies. Mr. Greenfield estimates that the wholesale price for a digital movie will be about $15, compared to about $18 for a DVD, which has extra bonus features (and works easily on zillions of players). Mr. Greenfield doesn’t mention it, but another force may be Amazon.com, which is selling downloads from Fox and other studios. Remember that Amazon’s entry into the MP3 business put pressure on Apple to lower the price of its unprotected downloads.
More interestingly perhaps, the studios are hoping to create “premium” versions of DVDs that include a copy of the movie that can easily be put on an iPod (and presumably a laptop with iTunes or an Apple TV). Fox has tried this already, with a version of “Die Hard 4″ that includes a digital copy. Mr. Greenfield writes that this version costs $3 or $4 more than an ordinary DVD.
My question to Bits readers, a gadget-loving bunch, is whether you would in fact pay extra for a combination of a DVD and an iTunes-ready copy. If so, how much extra? Answer here in the comments.
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