Our take...
Warner's decision to tie the the digital copy to just the Blu-ray release, rather than the DVD, is part of a wider move by studios to signal BD's role as a premium product with key differentiators beyond simply high definition over DVD, justifying its higher price tag. Both Disney and Sony have announced that all future BD releases will contain BD Live elements, whilst Warner itself will release its first BD Live title in time for Christmas 2008.

Warner began offering physical and digital bundles for selected DVD titles in December 2007 but until now the digital version was only available wrapped in Windows Media DRM, making it incompatible with Apple's range of devices. By providing the digital file in two formats, Warner is likely to make the download appeal to a much wider audience. Apple dominates the US portable media player market and the provision of an iTunes digital copy will extend the flexibility and portability of the title to video iPod owners.

Warner is the third Studio to offer iTunes-compatible files bundled with physical product. In January 2008 Twentieth Century Fox became the first Studio to partner Apple in this way, followed by Lionsgate. It is likely that Disney's first bundle (launching at the end of August 2008) will include an iTunes digital copy, given the Studio's historically close ties with Apple.

By offering a free iTunes digital copy of 10,000 B.C. bundled with the BD, Warner may see a negative impact on download sales of the title through Apple's store. While it is believed consumers who purchase physical products (especially high-definition titles) may have little overlap with those who opt to buy standard definition movie downloads, some cannibalization of digital sales should be expected. Moreover, trying to marry two very different consumer markets together - high-definition and digital - carries question marks over its mass market potential, while the move may yet devalue the digital product even further as a simple 'giveaway'.