IP Democracy: Apple to Sell Movies Online; Walmart Too; Big Screen iPod Here?

Business Week’s Ron Grover has this article on how WalMart, which accounts for 40% of DVD sales, is putting pressure on the studios for their deals to sell movies to Apple. While the article ostensibly is about WalMart, the big news, of course, is that Apple’s long-awaited sale of films via iTunes is about to become reality.

One sticking point in the studio-Apple negotiations was the price point of the films, but Apple has apparently raised the sale price for new films from $9.99 to $14.99. So far, only Disney has signed on to the iTunes sales, but it’s only a matter of time before other studios follow suit.

WalMart, which is reportedly planning its own movie download service (another scoop), wants the studios’ marketing help when that initiative launches. The mega-retailer also wants Hollywood to drop the wholesale price for each DVD from $17 to $15 so that it can compete with Apple. In his blog, BW’s Arik Hessedahl gives Grover’s piece the appropriate credit for being the exclusive it is.

This news gives credence to the rumors that Apple will be hosting one of its famous “special events” on September 12. The unveiling of iTunes’ movie downloads also probably means that Apple will debut its big-screen iPod, which reportedly has been ready for some time.

Apple has reportedly been sitting on the no-doubt big money-maker until the Hollywood talks bore fruit. And it helps that the cool new device, which is said to have a four-inch screen, will be released just in time for the 2006 holiday season.

Posted by Cynthia Brumfield on September 1, 2006 9:48 AM to IP Democracy