Steve Jobs and Apple Computer Inc. (AAPL) is continuing in its negotiations with numerous Hollywood studios to use its iTunes Music Store Web site to offer movie downloads.
The Daily Variety reports that iTunes may begin offering film downloads by the end of the year if they can work out the details. Steve Jobs wants to charge a flat rate of $9.99 a movie, while the studio heads want fluctuating prices tied into what the retail stores charge.
I hope Jobs doesn't give in on this as it takes away part of the free market system. Why shouldn't iTunes charge the price they want if it is agreed to. Tying it in to other businesses is just another way of price fixing. In other words retailers are really saying that they can't compete with the digital world.
We've talked about it before here that they need to start offering download kiosks in their stores to compete. To say everybody else must charge the same as them is saying that they don't know how to compete with the changing world. They're right.
What would be in it for Apple if they are forced to pay the same prices as any other competitor? Absolutely nothing. Again, I hope Jobs doesn't give in to this.
Apple currently has deals with CBS (CBS), Walt Disney Co. (DIS) and News Corp. (NWS) to download shows the day after they're shown on TV.
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