Apple to Close Movie Deal With Fox?


Apple is reportedly close to sealing an iTunes movie distribution deal with Fox, AppleInsider reports one Wall Street analyst stating.

The two firms are 'actively negotiating' terms, which, when finalized, could lead to an early 2008 announcement. Fox and Apple are avoiding affecting the 2007 holiday shopping season, during which more DVDs are purchased than any other time of year. Similar objections arose in 2006 from one of the studios' biggest customers, Wal-Mart.

Apple CEO Steve Jobs has battled record companies, TV networks and movie studios to keep iTunes prices down and has largely won on the music front. However, Apple reluctance to charge higher prices for movies and TV is beginning to cost the company media suppliers; NBC Universal has pulled its shows from iTunes, while few movie studios have come on board, despite prohibitive DRM on iTunes movies.

However, it appears that Fox has convinced Apple to sell its movies for more than $15, or just $3 less than a retail boxed DVD. Apple usually sells movies for $12.99 and $14.99, or $9.99 for old movies.

Analysis: AppleInsider notes that the Apple-Fox talks have been on for around a year. But if Apple is prepared to shift on price, a 2008 deal may be possible.

Would a digital movie for $15-plus be worth the money? Does it depend on the DRM? Is it worth it just to save yourself the trouble of converting a DVD to iTunes format for watching on your iPod?