Tech Shout!

Apple has now turned its attention to the next thriving and logical medium - movies. Apple Computer Inc. is in talks with most of Hollywood’s studios like Twentieth Century Fox, Universal Studios, Disney and Warner Brothers to offer movie downloads via its popular online iTunes Music Store.

Apple’s Chief Executive Officer Steve Jobs said he wants the flat price of $9.99(459INR) per movie, whereas studio executives want a range of prices that mirrors videos and DVDs at retail stores which, generally speaking, run from discount titles at a few dollars apiece up to $19.99(918INR) or more for new releases.

Pricing is a key component behind the appeal of iTunes. Since its launch in 2003, Apple has sold individual song downloads for a flat price of 99 cents. When it added TV shows to its download menu, Apple set the price for individual shows at $1.99. “Studios will demand flexible pricing and licensing models, which Apple has been reluctant to explore with audio content,” said Nitin Gupta, a Yankee Group analyst.

Putting movies for sale online, via iTunes would seem like a logical step for Hollywood’s studios. Already, they offer movies online at Web sites like Movielink and CinemaNow, and Warner Bros. recently agreed to make movies available via BitTorrent. But because iTunes is already widely used for downloading songs and television shows, the relatively new market for downloading movies would likely get a boost from the added exposure of being backed by iTunes.

“Apple will enter a competitive landscape, competing with the likes of CinemaNow,” said Zippy Aima, an analyst at research firm Frost & Sullivan. “Apple will have to price the downloads in a similar range.”