iTunes movie downloads to go for $14.99 a pop?

Yeah, we've been around the block on this rumor a few times already, but some interesting new details about a possible (some would say invitable) iTunes Movie Store have emerged in a recent BusinessWeek article. The gist of the report is that Wal-Mart has been talking up the Hollywood suits lately, and isn't too happy with the idea of Apple selling new releases for a mere $15 while Wal-Mart has to spend $17 wholesale for the same title in physical form. Of course, that $14.99 number -- $9.99 for older movies -- isn't exactly official, but the way Wal-Mart is purportedly going off about it, it seems to be a very real figure indeed. According to BusinessWeek, the Wal-Mart gripes are one of many reasons Apple has been having trouble signing up studios other than Disney (of which Steve Jobs is the largest shareholder) for the store. Some studios aren't happy with iTunes DRM that allows playback on up to five devices, while others are afraid of getting locked into a single pricepoint with Steve Jobs and co.. Either way, it's clear that movie downloads are the future -- Wal-Mart has their own such service in the works -- but we just hope these "discussions" end soon; before we end up spending $45 a flick and verifying our identity for playback with thumbpricks and urine samples.

[iPodder @ Feb 15th 2008 7:00AM]

That just too much .. I use http://www.ipodtunesdownloads.com for all my ipod and iphone music and movie downloads. The service there is great.

[tsukata @ Sep 1st 2006 11:00AM]

If iTunes offers movies, they've got to improve their player and offer VCD or DVD burning. Right now, watching TV shows or short videos in their UI is painful, and I can't move it to format that will work with my DVD player.

[Aaron @ Sep 1st 2006 11:10AM]

I like the idea of owning my discs (even if there is restrictive DRM) and knowing I can take them to a friend or relatives house and watch them there or borrow a movie from a friend or relative and watch it at my home. Something tells me that isn't going to be an option with the downloadable movies.

[Raleigh @ Sep 1st 2006 11:39AM]

It hurts me to say this, because I'm such a huge fan of anything Apple does, but I think this is one place where they will run into a wall. What I think they should do is have the full screen, full resolution version available for 9.99/14.99 and then make an iPod sized one for a discount price - say 5.99/9.99, because the majority of people who will buy movies on iTunes, I believe, will be buying them for their iPods. I don't think it will ever dominate the DVD market like the Music Store did with actual hard copies of music albums, unless the price drops.

However, the little voice in the back of my head is telling me that they'll sell 1,000,000 movies in the span of a year...

[OlivierB @ Sep 1st 2006 11:31AM]

Kindof OT but I sure hope left hand will speak to the right hand at Apple.
I paid good $ for the Pro version of Quicktime and yet when I play videos from iTunes they don't use QT Pro interface and goodies. Please give us an option to play videos from the iTunes library directly in Quicktime without doing file reveal and then drop on Quicktime.

For all of those in the dark; QT Pro offers superior anti-aliasing (great for low res videos), overlay controls and best of all multi-screen support (where iTunes only plays fill screen on the screen it is currently on).

[doubtful @ Sep 1st 2006 11:32AM]

"before we end up spending $45 a flick and verifying our identity for playback with thumbpricks and urine samples."

You mean Bluray?

[embee @ Sep 1st 2006 11:34AM]

Sounds like someone missed their price-point. For an extra greenback, I get the full disc at full rez (perhaps even a second, filled with extra goodness). $15 for a movie download is too much. I stick to the brick+mortar and the actual physical copy.

[Peter S @ Sep 1st 2006 11:35AM]

From a business standpoint, if I was Apple, I'd jack them up to 20. Think about it, Apple is, sad but true, owning the Mp3 player market with that stupid electronic chicklet they call the iPod, and a lot of those play video. Those iPods have almost exclusive drm/codecs, so they can't get videos anywhere else. Why not?

[James @ Sep 1st 2006 11:59AM]

For $14.99 I can just go to Best Buy or Circuit City and buy a new release the first week of release. I personally rather have the hardcopy of a DVD. The only time I can see myself using this service is for an old DVD that I can not find in stores or on eBay, etc.

Like Raleigh said, I think people will run to this service but I don't see the advantages yet.

- James

[Slash @ Sep 1st 2006 11:36AM]

"Warner Bros. has decided to release its films on DVD for sale in China as quickly as 12 days after their theatrical debut, and at prices as low $1.25 a movie."

http://www.msnbc.msn.com/id/14481929/

Why cant we get that here?

Damn you hollywood.

[Mithras @ Sep 1st 2006 11:37AM]

I'd really rather rent. There are only a few great movies I need to watch more than once or twice.

[dave95 @ Sep 1st 2006 11:39AM]

For that price, I should be able to burn to DVD. Quality should be just as good if not better than DVD Movies.

[Marito @ Sep 1st 2006 6:26PM]

If these are intended for iPOd viewing, the cost is way too high, its probably higher than most DVD's out there. Whay pay $15 for a small screen sized movie, which will probably also be restricted like the music they sell.

[hmurchison @ Sep 1st 2006 11:47AM]

I barely spend $14.99 on physical DVD discs. There are plenty of $9.99 options out there to keep me happy.

I'm an Apple fan but if they think that downloadable videos will have the same effect as downloadable music they are sorely mistaken.

Music is what I like to have on me all the time. In the car, working out, at home. Movies is what I want when I'm ready to devote close attention to the presentation of a film. The consumption of the two is vastly different.

I won't be buying $14.99 movie downloads.

[Franssu @ Sep 1st 2006 11:42AM]

"before we end up spending $45 a flick and verifying our identity for playback with thumbpricks and urine samples."

You know, if Hollywood really doesn't want us to see their movies, let's just don't see them. I'm game. We'll see who rust first.

[Desert @ Sep 1st 2006 11:48AM]

If this RUMOR is true, I think it's too expensive as well. But if I remember correctly, people thought 0.99 was too expensive as well. And lookie here, iTunes is at the top. They're not idiots.

[LTM @ Sep 1st 2006 5:28PM]

Paying $15 to watch a movie on a 2.5 inch screen. What, are people really dumb and completely nuts at the same time?

That's a rhetorical statement by the way. :-)

[Jeff Foster @ Sep 1st 2006 11:52AM]

if they're offering at least 480P i'll be okay with that, but for $15, i'd almost want 720p ...but 1080P is overkill for me because my boxen can't handle it. :(

Now isn't the CSS on a DVD essentially DRM? so why doesn't Apple just write in CSS encryption onto the DVDs that (the new version of) iTunes burns? ...essentially making them exactly as secure as any DVD you buy in a store, and only allowing you to burn 1 copy (per month? per year?) but watch as often as you like digitally.

Just because it's distributed digitally, it has to be way more horribly encumbered by crappy DRM? that doesn't make any sense.

also, paying $15 for 320x240 also makes no sense, and i hope Apple doesn't pull that "this is for the ipod" shit. make an ipod-sized copy available, but that better not be the full resolution.

[Doolittle @ Sep 1st 2006 11:58AM]

Is it too pricey if the movies are 720P or 1080P? Why do people insist on criticizing before there is any real information?

[CharlieX @ Sep 1st 2006 12:01PM]

Problem is... I could hoof it to best buy, get a DVD of the movie, come home, and watch it all the way through... probably before the download finishes (assuming these are DVD quality mpeg-2 streams).

[Mr. B @ Sep 1st 2006 12:30PM]

$15 for a movie download!? Where's the P.T. Barnum statue at Apple HQ?

[G Money @ Sep 1st 2006 1:04PM]

This is all just to throw people off. Apple should overtake netflix. Make it subsciption based like netflix. 3 downloads a month, 4 downloads a month 5 downloads, unlmt downloads. Make the downloads DVD quality 480p. Allow them to be burned to DVD, and WHAM, APPLE IS A WINNER AND netflix and blockbuster are losers. What would someone pay for unlmt downloads here?

$20
$25

you figure hbo is 20 bucks a month, plus Time Warner and cablevision charge 5 bucks for in demand? So 25 sounds reasonable.

Apple could make a killing!!!!

[Raider @ Sep 1st 2006 1:05PM]

TEN DOLLARS TOO EXPENSIVE!!!!!!

[Nicholas Schaulsohn @ Sep 1st 2006 1:15PM]

Anyone who thinks that selling movies for 15 bucks on iTunes is going to fly with the consumer is crazy.

[Wonderboy @ Sep 1st 2006 1:27PM]

Uh, Doolittle... you ever seen the file size for a 720p or 1080p movie? Yeah, they exist on the new HD-DVD and Blu-Ray discs... meaning 15-30GB (potentially 50GB) per movie. You wanna download that? You think Apple can afford the bandwidth for $15/movie? You think your ISP isn't going to squeeze your internet speed for downloading so much?

In which ideal world do you live? I'd love to take a vacation there.

[SOyuncastor @ Sep 1st 2006 3:31PM]

"some would say invitable"

do you mean "inevitable" ?

[Gospel Moody @ Sep 1st 2006 2:02PM]

It's brick and mortar for me. This will only push more people into illegal downloads. The movie companies have NO CREDIBILITY at all anymore. It's not Apple's fault. No wonder Steve looks gaunt. How much money has Apple invested, all for nothing obviously. Yet another way in which the Entertainment Industry is so incredibly stupid.

Sorry for holding back on my true feelings, I'm trying to be genteel about it.

[nhokawa @ Sep 2nd 2006 2:03PM]

Huh, Walmart complaining about being undercut in price? How ironic, I hope it happens, those commie Chinese supporting, King of manufacturing outsourcing bastards deserve it...

[paul @ Sep 1st 2006 4:51PM]

I'll pay $15 if it's full-size, but not for one that'll be blurry at full-screen, like the current iTunes TV shows.

As for Hollywood, they're just nervous about online sales. As someone who works in the industry, I can tell you that most of the big decision makers are in their late-40s and mid-50s, and have little online know-how. Getting them to sell movies online is like trying to get your grandpa to buy an iPod. They aren't interested unless you can show them a big reason (profits).

[Ray @ Sep 2nd 2006 2:24AM]

Apparently the studio would rather make $0 due to bittorrent downloads than whatever fraction of $15 they would get.

[Michael @ Sep 1st 2006 4:16PM]

You know I don't want to buy them online. And $15 is way too expensive for a digital copy without a nice physical package. But I would totally rent a movie digitally for say $2-4 a night depending on if the movie is brand new or older. But I'd want three things for that to happen.

1. At least 480p quality like a DVD.
2. Access to all the special features you can get renting a DVD
3. The ability to watch it on my computer full screen or get it onto my TV in some way, even if it requires me to buy a new ipod that can do full 480p resoltuion unlike the current one.

I don't have to burn it to a DVD and allowing so would make it difficult for them to keep things under control.
So I'd be all about renting this way, but when I buy movies I like the full packaging.

[Doug @ Sep 1st 2006 4:46PM]

these movie companies are way to greedy and wal-mart, is well, wal-mart. i say just screw all these people and make your own movies and distirbute them. most of the movies these studios put out suck anyways....sure would not pay $15 for an ipod version that is for sure...

[David @ Sep 1st 2006 6:24PM]

Um it seems no one has mentioned the fact that Apple probably wants to sell the movies for less than 9.99/14.99 a pop. But Hollywood and companies like Wal-Mart will not allow it. I'm sure Jobs and Co., would love to put DVD quality movies on iTunes for 9.99 for new releases and 5.99 for older flicks, but I doubt any studio is going to go for this. Hence Apple is somewhat at the mercy of the studios when it comes to negotiations. While Apple may want to deliver a quality product for a great price the studios will see the success of the iTunes Music Store and insist that they want a piece of that pie. If people are buying CDs for 9.99 then they'll buy movies for $14.99 - I'm sure this is the mindset of the giant, out-of-touch Hollywood executive. I agree a $15 dollar movie via iTunes likely won't fly with the consumer - and I'm sure Apple has their doubts about this as well. But there's a lot of pressure right now for iTMS to start delivering the conten and despite Apple's reservations, they're going to end up doing it. It looks like the studios are hoping to turn this into a cash cow. I only hope Apple can get through it with little damage - but from the sound of things here most people believe it is Apple taking the consumer for a ride and not Hollywood.

I also think distribution is going to be a major, major issue here as well. How long is one movie going to take to download? And how soon before your ISP starts charging you for extra bandwidth? Are you going to be able to download unlimited numbers of movies per month? That would tax both Apple's resources and your ISPs.

[begbie @ Sep 1st 2006 6:25PM]

Apples version of Sony's UMD.
Over priced crap.

[Dan @ Sep 1st 2006 8:32PM]

HOLY CRAP!!! ALL OF YOU SHUT UP!

There's been no confirmed info on download size, official price point, limitations, DVD-burning, resolution, or ANYTHING yet!

They absolutely WILL NOT!!!! make it just for iPod viewing at 240p for $15. The article said Apple didn't like the $14.99 price and Apple isn't that stupid to release such a low quality download.

iTunes will probably get a big upgrade with some new system to unzip a movie file as it downloads in sections or something and you'll probably be able to watch the movie as it downloads.

Burn the encoded Movie to a DVD and perhaps it won't be able to be copied back off (not with iTunes anyway).

Perhaps a slower frame rate to reduce file size even more? 720p24?

Just calm the eff down and stop assuming random crap and wait for more info.

[Dan @ Sep 1st 2006 8:35PM]

also, maybe they'll give you a picture file to print out and slap on your DVD so it look like the real one, or if you have a printer that can print onto the cd, that could work.

[Alcoholic Zombie @ Sep 2nd 2006 12:07AM]

"You know I don't want to buy them online. And $15 is way too expensive for a digital copy without a nice physical package. But I would totally rent a movie digitally for say $2-4 a night depending on if the movie is brand new or older. But I'd want three things for that to happen.

1. At least 480p quality like a DVD.
2. Access to all the special features you can get renting a DVD
3. The ability to watch it on my computer full screen or get it onto my TV in some way, even if it requires me to buy a new ipod that can do full 480p resoltuion unlike the current one." - Micheal

I have good news for you in the next year. I work for one of the Best Buy Magnolia stores and a new company is rolling out with a set top box possibly smaller than a portable dvd player that has a 300gb hd with hmdi. No monthly cost and you can rent movies for around $4 that is displayed at 480p but the box can upconvert to 1080i and you get access to all the special features too.

I dont know the rest of the details because it is in it's very early stages but from what I hear, it sounds promising.

On top of that, new releases are available instantly unlike that crappy MovieBeam service.

Go Brains!

[kevin @ Sep 2nd 2006 1:24PM]

Ridiculously expensive. Even if we assume it's full resolution (unlikely), for $15.00/download, it'd have to be the full blown special editions plus some.

Sorry, but i want the packaging/case. If I have to provide those things (as well as the DVD(s)) that's at least $2.00 (probably $3.00) for each Verbatim Dual Layer DVD, at least $.50 for a Amray or Alpha Pak case, plus whatever it costs to print the a cover.

When you add it up, this is way more expensive than just buying the DVD the week it comes out. Even if you never burned it and just left it on your HD, you'd still have each movie taking up around $4.00 is HD real estate (God help you if your drive dies).

IMO, even if these are idential in every way to the DVD, they're worth no more than $10.00 when first released. 2 Disc set is worth $13.00....max. And even then, you're at best breaking even, so you might as well buy the DVD in the store. The life of pressed DVDs is longer than DVDRs.

[javaflash @ Sep 5th 2006 7:13AM]

Yup, the real culprit of the high price tag, WalMart, who aren't willing to see their dominant 40% position in DVD sales goes away.

From what I know, the margin of DVD sales are so minimum that some retailers only use new releases to attract store traffic instead of accumulating profits.

Now, imagine WalMart thinking possible decline of store traffic...

[JimmyC @ Sep 12th 2006 2:58PM]

Well- its out there. And Help says you cannot burn iTunes movies to DVD: "Movies purchased from the iTunes Store can't be burned to a DVD or VCD that will play in a DVD player or Video CD." So what good is downloading Dumbo if I can't burn it to a DVD to play in the car for the kids? Hmmmmmm.