AFI BLOG: Media and Technology

Variety

Majors offer digital downloads of DVD releases

Pricing concessions paved the way for Apple’s sweeping movie sell-through deals with the majors.
Pacts were actually brokered several months ago, shortly after all six majors agreed to rent their movies through the iTunes Store, but not formally unveiled until Thursday. Apple, studio execs say, needed time to “ingest” an appropriate amount of content before going public with the deals.

Initially, Disney was the only major to sell new releases the same date DVDs hit shelves, but Fox and Paramount had recently begun to sell a few new releases under the service (Daily Variety, April 16). From now on, those studios, along with Universal, Warners and Sony, will sell all their new releases through iTunes. Lionsgate, Image Entertainment and First Look Studios will also sell their movies day and date under the service.

Studios have also been selling older catalog fare under the service for some time, but those pics had already been released on disc, so pricing, and the risk of cannibalization, was less an issue.

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