Apple is in talks with most of Hollywood's studios to offer movie downloads via iTunes, show business newspaper Daily Variety reported today.
Apparently movies could pop up on your video iPod via iTunes as early as this fall. But a major kink yet to be ironed out is pricing. Steve Jobs wants a flat fee per movie of $9.99 (smart cookie) but the Hollywood studios are haggling for a range of prices similar to DVD's ranging from a few dollars to $19.99 (proving they may be less smart cookies).
One of the key success factoirs for the massive uptake of iTunes is the simple pricing at 99c per tune in the US, 99 Euro cents in Europe and 99p in the UK (tough luck the UK!).
This is such a key move for Jobs and iTunes and one which could move the iPod device ever closer to its real goal as the ultimate mobile computing platform. The challenge will lie with iTunes, which may even require a brand makeover - why would I think of buying movies from a site called iTunes??