Apple in talks with Hollywood to offer early digital movie rentals
Apple and Comcast want to develop a $30 to $50 premium movie download service
Apple and Comcast are in talks with Hollywood giants to create a service where movie releases will be available as digital rentals shortly after they are premiered in the cinema.
Bloomberg reported that both Apple and Comcast are continuing to hold talks with movie studios, including Warner Bros. and Universal Studios, where the plan is to offer an early rental which would cost between $30 and $50 per movie.
Bloomberg stated: "The terms being discussed vary between each studio and each cinema chain, with some talks focusing on a release date of about 17 days after debut, for about $50, or four to six weeks from release for $30, people familiar with the talks said."
However all parties are unable to reach a mutual agreement.
The shake-up in movie viewing stems from the declining sales in the home video and DVD market, however the plan is mostly opposed by cinema chain operators. Cinema chain operators argue that such services will change the movie viewing experience, and it will eventually discourage people to visit the cinema.
Walt Disney has also opposed the idea and is not in talks with Apple and Comcast as it plans to launch its own streaming video service, and has already announced it will pull its content from Netflix. However Lion Gate Entertainment Corp is encouraging a deal stating ‘it will be great for the business'.
Despite the objections, Bloomberg reported that deals with potential parities could be reached as soon as early next year.