On the Web, iTunes is King
Posted by Chrystalline on 30th July 2006
Apple plants seeds for pic downloads - iTunes going to the movies
The main sticking point is price.
Apple CEO Steve Jobs, who has been personally involved in the talks, initially proposed selling all films at a flat price of $9.99 — an offer the studios flatly rejected.
“We can’t be put in a position where we lose the ability to price our most popular content higher than less popular stuff,” said a studio exec close to the negotiations.
Apple has traditionally sold digital content at a single price: 99ยข for songs, $1.99 for TV shows and musicvideos. It has recently experimented with some longer video content, however, selling the Disney Channel telepic “High School Musical” for $9.99 and the “Battlestar Galactica” miniseries for $14.99.
Apple gives TV and music companies a 70% wholesale rate and is offering the same to film providers.
Okay, I can understand the appeal of having one price for all files. It simplifies things immensely, and makes a great marketing tool. Also, every retailer should have the right to set prices as he sees fit. HOWEVER - the retailer does not have the right to dictate price to the wholesaler/producers. This is one of the major gripes I’ve been hearing about Walmart, and Apple doesn’t need the kind of bad PR that Walmart has earned through this same behavior. The film distributors should be able to set their prices as they see fit, and if Apple wants to price the downloads so low that it is essentially paying the studios to allow people to DL films, well, let ‘em. I can guarantee you that’s not what Apple wants to do.
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