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Published on August 29th, 2017 | by Brad Gibson

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WSJ: Apple, studios disagree over 4K movie pricing

The Wall Street Journal is reporting (subscription required) Apple and various movie studios are deep into negotiating deals to offer a ultra-high definition, 4K films for a rumored fifth-generation Apple TV, but that both sides are at odds over how much to charge.

According to people familiar with the talks, WSJ reports Apple wants to charge $19.99US for those movies, equal to the price is charges for many new HD movies, while “several Hollywood studios” want to charge $5 to $10 more for 4K movies.

An executive at one movie studio said Apple’s preferred price point would likely prove more popular with consumers given the vast amount of content available for $12 or less a month from competitive online service Netflix.

The disagreement is similar to the same problem over the years between music companies and technology companies, with the latter arguing lower prices help generate more long-term revenue, while studios worry more about protecting profit margins and higher prices for better quality content.

WSJ also notes that the addition of 4K films could help “rejuvenate the iTunes Store” that has been losing market share to Comcast/NBC Universal and Amazon, falling below 35% from about 50% in 2012.

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About the Author

has been a technology reporter since the late 1980s having previously worked for MacUser, MacFormat, and iCreate magazines, as well as MacNN.com, MacObserver.com, MacCentral.com, MacMinute.com, and Macworld.com. He hosted and produced the MacFormat This Week podcast for three years.



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