Hollywood balks at Apple online movie rentals
Apple Inc.'s plans to enter the nascent online movie rental business drew skepticism on Monday from Hollywood executives who questioned pricing, copy protection and the timing of a possible launch.
Sources inside and outside the major movie studios confirmed news reports the maker of computers and iPods is considering online film rentals to complement digital movie downloads that are already sold at Apple's iTunes web site.
But the sources, who declined to be named because film licensing talks are preliminary, questioned Apple's desire to fight copy piracy and the reported $2.99 price per rental.
Some said that, because the film download market remains small, the studios do not need to rush into a deal with Apple. Several companies already rent digital movies to Web customers, including CinemaNow, Movielink and Amazon.com Inc..
"It just feels like the ball is in our court," said one source.
Apple declined to comment.
Two publications recently reported Apple was talking to all the major studios about licensing films for a rental service and the service could launch as early as this fall with movies available for a 30-day period at a cost of $2.99.
But that price raises questions for the studios because it would significantly undercut what consumers now pay for online rentals of new releases, which can cost up to $4.99. Moreover, the price might cannibalize pay-per-view revenues the studios already receive from cable and satellite TV.
Sources inside and outside the major movie studios confirmed news reports the maker of computers and iPods is considering online film rentals to complement digital movie downloads that are already sold at Apple's iTunes web site.
But the sources, who declined to be named because film licensing talks are preliminary, questioned Apple's desire to fight copy piracy and the reported $2.99 price per rental.
Some said that, because the film download market remains small, the studios do not need to rush into a deal with Apple. Several companies already rent digital movies to Web customers, including CinemaNow, Movielink and Amazon.com Inc..
"It just feels like the ball is in our court," said one source.
Apple declined to comment.
Two publications recently reported Apple was talking to all the major studios about licensing films for a rental service and the service could launch as early as this fall with movies available for a 30-day period at a cost of $2.99.
But that price raises questions for the studios because it would significantly undercut what consumers now pay for online rentals of new releases, which can cost up to $4.99. Moreover, the price might cannibalize pay-per-view revenues the studios already receive from cable and satellite TV.
Labels: apple, online-movie
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