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Apple to create iTunes Movie Store?

Posted by Geetesh Bajaj on June 22, 2006 06:50 AM

Apple is working on repeating its iTunes music store success story with movies this time, but movie studios are not bending backwards. It might be something before its time because the iPod's small screen is not the size that Hollywood movies are made for -- so does Apple have something larger than life looming ahead?

The Guardian reports that Apple, which already controls more than 75% of the music-download industry, hopes to introduce a service that would allow users to download films for $9.99 each by the autumn.

The International Herald Tribune adds that consumers have been willing to spend 99 cents to buy Shakira's "Hips Don't Lie" or $1.99 for an episode of "Desperate Housewives" from iTunes. Now Steven Jobs is betting they will also pay $9.99 to download "The Godfather" to play on their iPods.

Not surprisingly, MSNBC doesn't agree. According to their Hollywood sources, Apple has hoped to get the store up and running within weeks. But the deal isn't yet doneā€”and there's a chance it won't be any time soon. That's because Apple and the studios remain at loggerheads on a range of issues, from how much movie downloads should cost, to the degree of piracy protections they should carry. "This will take months and months to figure it out," says one source involved in the talks. "It may even be a 2007 kind of thing."

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