2 May 2008

US customers will be able to download films from iTunes on the same day as they are released on DVD.

Apple has announced that the new service will start this week and will sit alongside the iTunes movie rental service. It is the first time new-release films will be legally available via download on a large scale.  The service will potentially precipitate a wider shift in the movie industry towards embracing digital distribution of content.

Major studios including 20th Century Fox, Paramount, Universal, and Sony Pictures Entertainment are backing the service.

To date the majority of video download services have been focused on TV series as well as "library" titles, with only some studios, such as Disney, having offered new-release titles. Studios have been reluctant to support "download to own" services, which they see as competing with DVD sales — a mainstay of their revenues.

Analysts predict the new service will put extreme pressure on Apple’s competitors. This is largely due to the immense tie-up power it has with its iPod devices which already play video content.



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