Apple Compromising On iTunes Movie Terms?
Businessweek reports that Apple may be close to striking a deal with most of the major movie studios to provide movies for the iTunes store.
Apple may have had to compromise on a number of issues including pricing in order to get everyone on board. Apple has reportedly agreed to pay studios "closer to the $17 wholesale price" that they get on physical DVD sales. In return, studios may offer online releases on the same day as their DVD debut. Businessweek states it's unclear if Apple will increase end-user prices or simply absorb the cost in an effort to promote iPod and Apple TV sales. Apple currently charges $14.99 for new releases and $9.99 for older titles.
Businessweek's sources also claim Apple's movie rental service will be priced at $3.99 for a 24 hour rental, which is consistent with recent rumors.
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