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So It Begins - Apple & Movie Downloads

By Garth Franklin Monday June 19th 2006 01:02AM

First songs, then TV shows, now Apple is looking to corner the market in downloadable feature film releases.

Variety reports the computer company is in active negotiations with most major studios to add movies to its iTunes Music Store, most likely by the end of the year at the latest source Unlike its TV show section which launched with ABC Network shows, its expected pics from numerous distributors could debut together.

The main sticking point at the moment is price - Apple is keen on a flat price for all films, the studios are not and want new releases to sell for much higher than old ones.

While the homevideo market is slumping, it still generated $23 billion in the U.S. last year and studios don't want to risk angering major retailers. Studio source iTunes moviestore debut to coincide with the launch of a video iPod with a bigger screen more appropriate for films.

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