Apple Kills The DVD May 01, 2008

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If you’ve already jumped aboard the media streaming / video on demand bandwagon you might well have asked yourself how long it’ll be before downloadable content replaces the DVD.

‘Not long’, would be a pretty accurate assumption, following news that Apple has struck a deal with a range of studios to sell new releases at its iTunes store.

The key driver here is that the films will be available online on the same day they’re officially announced on DVD, so if you’re too lazy to drag yourself down to HMV there’s a perfectly viable alternative right there.

The deal seems pretty comprehensive as well, with Fox, Walt Disney Studios, Warner Bros., Paramount, Universal, Sony Pictures, Lionsgate and New Line all involved. MGM is yet to throw its hat into the ring, but this shouldn’t stop the new service having a significant impact on DVD sales.

Apple procured the rights to movie rentals back in January, with the cost of a 30-day rental period at between $3 and $4, and the new movie purchases are expected to cost up to $15.

How attractive this price point will be to consumers is yet to be seen, but since Disney CEO Bob Iger announced in March that his company had sold 4 million movies via iTunes since 2006, we think it’ll be quite the success. - Paul Lester

[Reuters]

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