Some of Hollywood's biggest movie studios, Universal, 20th Century Fox, Paramount and Warner Bros, are in talks with Apple about making their movies available on iTunes.
After months of discussion, a sticking point has emerged over the studios’ demand that Apple limit the number of devices that can use a film downloaded from iTunes.
The studios want to avoid the experience of the music industry, which has yet to recover from years of illegal digital piracy. Apple must introduce a “new model” for feature film content delivery, said one studio executive involved in the talks.
With the average cost of a blockbuster film approaching $100m, movie studios had more to lose than music companies, he added. “We’re very willing to do a deal but we’re keen to get some concessions from Apple that will account for the differences between the value of music and television content and feature film content.”