[Edward Kirk]

According to Financial Times, Apple is currently in the midst of talks with Hollywood's largest movie studios. As you may know, Apple already has distribution deals with Walt Disney and Paramount. other companies have been concerned that making their content available in download form may damage the profitable market of DVD sales. Hopefully they will be more likely to join a video-on-demand service, as rental DVDs are much less profitable.

Apple denied to comment, but Financial Times believes them to be aiming for a release this Fall. Interestingly, this falls near their October release date for Leopard. Currently they believe the price for a 30-day film rental through the new on-demand service will cost US$2.99.

What does all this have to do with the iPhone? Well they believe the Digital Rights Management for the videos will allow for it to be viewed on at least one other device. That means you could rent a movie and put it on your iPhone. Worthy of note, of all Apple's prospective competitors for the VOD service, companies like Comcast, DirectTV, Xbox Live, Movielink, and Unbox (a joint venture between Amazon and TiVo), none have as large a consumer base.

Though neither Sony Pictures Entertainment, 20th Century Fox, Paramount, Metro-Goldwyn-Mayer, Warner Bros nor Disney were willing to comment, one anonymous studio executive did tell them:

“When you think about Apple customers they are so connected to the brand they will try anything to do with it.”

I must say, I'm inclined to agree, being that I tend to fall into that category myself, though I think Apple deserves credit for fostering this connection.

[hermesnyc]

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