Apple Reinvents Film Biz With iTunes Movie Rentals


Apple is about to turn the movie rentals business on its ear.

The new iTunes movie rentals service, announced Tuesday by Apple CEO Steve Jobs during his Macworld Expo keynote, is powered by deals with all the major film studios and stands to reinvent the way people rent and watch movies, analysts say.

"They really nailed it," Jupiter Research Vice President and Research Director Michael Gartenberg said of Apple's move into movie rentals. "This is going to be extremely disruptive, doing for movies what the iTunes music store did for music."

The new service will let anyone with iTunes or an iPod rent DVD-quality movies with stereo sound for $3 ($4 for new releases). HD movies with 5.1-channel sound cost a dollar more. The "completely reinvented" Apple TV -- sporting an upgraded user interface at a lower price -- allows viewers to place orders from their couches. Like Amazon Unbox, Apple's new service allows movies to begin just seconds after an order is placed.1

Gartenberg said he sees Apple's online movie distribution plan as a likely success due to the ease and flexibility of Apple's content/hardware ecosystem, as well as Jobs' ability to strike deals with the movie industry where other manufacturers have failed.

(Source: Wired)

Film Business, Internet TV

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