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Movie industry takes on Apple

Going where the music industry never went
Mon Jun 19 2006, 17:29
THE MOVIE BUSINESS is aiming to succeed where the music industry failed and force Steve Jobs to change his mind over the prices of flicks he wants to flog online.

Apple wants to start selling movies for video iPods online and according to Variety magazine Jobs is personally entering into negotiations with the movie studios.

Jobs has apparently put his paw down on the price of movies which he thinks should be a flat rate of $9.99.

However when he put that offer to the studios they laughed loud and heartily and told him to go forth and multiply.

But Jobs also put his foot down with those pesky music studios when he demanded that he be allowed to flog singles for .99 cents and in the end they bent to his will.

Jobs also has the advantage that the home video market is slumping, just like the music industry was until the iPod appeared and managed to kick start music sales.

But there are also some significant differences in the video market which might mean that Steve's grand plan might end in tears.

For a start, the movie industry makes shed-loads of its money off the likes of Wal-Mart or Best Buy. If the studios do a $9.99 deal with Apple, it might miff the retailers so much that they might demand the same sort of deal, or pull the plug on flogging DVDs.

Also there is an existing market for online digital content already and the likes of Movielink and CinemaNow are paying DVD wholesale prices to get digital copies and they are doing quite nicely.

In short it is a more competitive market and the studios do not need Jobs to pull their nadgers out of the online fire in the same way that the music industry did. It looks as if the mighty Jobs will have to do a bit more bending on this one. µ

L'Inq
Variety

 

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