Published:
04-Jun-08
Movies have been added to Apple's iTunes store (iTS) in the UK and Canada.
Both stores offer movies from 20th Century Fox, The Walt Disney Studios, Paramount Pictures, Warner Bros., MGM, Sony Pictures Television International, Universal Studios and Lionsgate. The Canadian store also includes titles from Maple Pictures. In both cases movies are available in standard definition (SD) on a digital retail and a digital rental basis, with selected titles available to rent in high definition (HD) directly through the Apple TV.
The Canadian store has a larger catalogue with 1,200 SD titles compared to 700 on the UK iTS. Over 200 HD movies are available to rent in Canada, double the number offered in the UK. Digital retail titles are available day-and-date with DVD release with digital rental release dates varying between Studios.
In the UK permanent downloads cost £10.99 (€13.90) for new releases and £6.99 (€8.80) for library titles. SD rentals are priced at £3.49 (€4.40) for new release and £2.49 (€3.20) for older movies. HD rentals cost £1 more.
The Canadian store offers digital retail movies using three pricing tiers – CA$19.99 (€12.80) for new releases, CA$14.99 (€9.60) for recent releases and CA$9.99 (€6.40) for library titles. SD rentals cost CA$4.99 (€3.20) with older movies available for CA$3.99 (€2.50). HD rentals cost CA$1 more.
Our take...
The announcements mark the first time movies have been sold through the iTS outside the US. Whilst digital retail pricing in the Canadian iTS is comparable to that used by Bell Canada's online store (the only other major digital retail movie store in the country) the UK price of £10.99 for a new release is highly competitive against not only other digital stores but also current DVD pricing. Apple can afford to sell digital movies at low prices because hardware, not content, is their core revenue generator. In order to compete, existing digital services may have to reduce prices in response, reducing their already low margins still further.
The close integration of the iTS with Apple's range of hardware will encourage uptake of the movie service. Screen Digest has long maintained that paid-for digital movie markets are driven by hardware-centric platforms. Along with Microsoft's device-based Xbox Live Marketplace store, which began offering movies in both countries in December 2007, the iTS is set to dominate the online movie markets in the UK and Canada.
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