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Movie studios fear Apple TV
Despite rumors of an upcoming iTunes-based movie rental service, many movie studio executives are worried that the Apple TV could give Apple the same advantage in negotiations with their industry as the iPod does in the music industry. Concerns over this issue are part of what has kept most of the major studios from signing deals to sell their films on the iTunes Store, as is the fear of Apple’s pricing on new releases causing bigger retailers such as Wal-Mart to retaliate by slashing prices on new DVDs. “As a long-term business matter, Apple has to get all the studios feeling good about the product and what they’re doing with iTunes,” said Gartner Inc. analyst Mike McGuire. Currently, only The Walt Disney Company offers new releases for sale on the store.
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1
The big studios are headed for the scrap-heap, same as the major record labels and tv networks. They need to toss their dead-as-doornails business models and realize they don’t control the world like they used to.
Posted by ArtDecoDalek on June 11, 2007 at 12:19 PM (PDT)
2
They should NOT fear the scrap heap due to an over-priced, under-powered streaming video device that doesn’t do half of what other streaming devices can do, requires iTunes and doesn’t do hi-def.
Sure enough, the studios must adapt or die, but this device will never be a tenth as popular as the iPod. First off all video never is, and second of all it’s just not the right device to break through to the masses.
Posted by malren on June 11, 2007 at 2:05 PM (PDT)
3
As is always the case, businesses fear the free market. You’ll never find a positive word about businesses in Adam Smith’s ‘Wealth of Nations’, and this reticence on the part of the studios is reason why.
Posted by OnlyShawn on June 13, 2007 at 6:46 AM (PDT)