Apple’s iTunes Hollywood deal makes DVDs redundant

Apple is due to announce that it has come to an agreement with several Hollywood studios allowing the company to rent and sell movies through iTunes on the same day that the movie becomes available on DVD. Does this mean that the movie studios finally ‘get’ digital distribution? And if so what does it mean for the future of DVDs?

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The deal is a challenge to the existing movie rental and sales model since it appears that the studios now accept the possibility of iTunes cannibalizing DVD sales if it results in greater total revenue and the studios seem to be betting it will.

The prices for the earlier releases of movies on iTunes are

• Rental: $3 - $4
• Purchase: up to $15!

$15 seems very high since there are plenty of sites selling DVDs below this price and remember you’re just getting a download of the movie — none of the materials that often accompany a DVD. There’s also all of Apple’s software restrictions to take into account such as the inability to play it on another machine easily and no ability to back it up (legally!).

The studios involved include:

• Disney
• Fox
• Image Entertainment
• Lions Gate
• New Line
• Magnolia
• Paramount
• Sony
• Universal
• Warner Bros

MGN is significant by its absence but the collection of studios already involved makes the deal significant, exerting pressure on iTunes competitors such as Amazon’s Unbox and Microsoft XBox Live Marketplace and may well mean the end of highstreet DVD sales — but only if Apple can get the pricing right.

This story on other sites

• NEWS: Apple iTunes to sell new movies – on the same day DVDs go on …
• itunes ups its release dates for DVDs
• re: NEWS: Apple iTunes to sell new movies – on the same day DVDs …
• Apple iTunes to compete “day-and-date” with DVD releases - Engadget
• iTunes to Offer Movies Same Day as DVD
• Day And Date Movies Starting on iTunes; Warner Bros’ Will Do It …
• iTunes Movies are Buyable!!!
• Warner Brothers to release movies for VOD systems at the same time …

Tags: disney,dvd,dvds,itunes,movie-rentals,movie-sales,movies,Sony,xbox,