Apple is still in talks with the movie industry over movie downloads in iTunes, an article on Variety says, but the parties have yet to come to an agreement on pricing. Movie studios "flatly rejected" Apple CEO Steve Jobs' proposal to price all movie downloads at an even $9.99, and are instead pushing for variable prices that would depend on a movie's popularity. Variety quotes an anonymous studio executive who said his studio "can't be put in a position" where popularity-based pricing is impossible.
Apple faced the same battle with the music industry earlier this year, but managed to pull through and conserve $0.99 pricing for all music tracks across the iTunes Music Store. Insiders claim Apple may capitulate on movie downloads, though, and offer titles at prices ranging from $9.99 to $19.99. Such pricing would mirror pay-to-own fees at existing online movie stores like Movielink and CinemaNow. Still, a fixed $9.99 scheme could give users a clearer incentive to buy movies online rather than drive down to the store and spend their $19.99 on a full high-resolution DVD with extras and commentary. Thanks to Ars Technica for the link.
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