While rumors have been floating around for a while concerning Apple Computer (AAPL) and Amazon.com (AMZN) making deals for movie downloads, word is out that there are in the final stages of the process with some Hollywood studios.
Apple, who understands the download business with its iTunes store, is about to unveil its deal with Disney next week for offering video on demand for its movies.
At the same time Amazon is in negotiations with several major studios to offer movies to its online customers. The deal may be announced later this week.
Everyday seems to bring another company that will offer downloadable movies, what is important about this news is that trust factor that these two companies already enjoy in the online space.
Everyday seems to bring another company that will offer downloadable movies, what is important about this news is the trust factor that these two companies already enjoy in the online space.
The Apple situation will be interesting as studios have been resisting working with them because of differences over pricing of their offerings. Apple and Steve Jobs believe that the flat fee model is the best for customers as it simplifies the process and makes it easy to understand.
Studios on the other hand say that they should be able to offer newer material for higher prices than the older material.
While the video on demand is beginning to take off, the studios may have to compromise if Apple doesn't buckle because the download movie business isn't taking off as fast as thought with the lesser known participants in the field.
With Amazon, they have made deals with Universal, Sony and Warner Bros. for provide downloads on its video service. These two companies should help the process to go quicker and enlarge the field for everybody. Hollywood may or may not like that idea; or their retail partners. The reality is that they must go this way whether they like it or not; consumers demand it.
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