Apple is preparing a video store

With the success of iTunes and after developing video enabled iPods, the next logical step is to go into the movie business. In the music business the flat $0.99 per track pricing has appealed to the consumers, even though it can hardly be considered cheap. However, Apple is facing difficult negotiations with the movie industry and no agreement about the pricing model has been made.

Apple CEO Steve Jobs, who has been personally involved in the talks, initially proposed selling all films at a flat price of $9.99 — an offer the studios flatly rejected.

“We can’t be put in a position where we lose the ability to price our most popular content higher than less popular stuff,” said a studio exec close to the negotiations.
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There are signs Apple may bend, insiders say, and allow price points ranging from $9.99 to $19.99 in order to differentiate older titles from new releases.

Source: Variety