WTF Hollywood?
It is almost time for that annual ritual that Apple fans across the world wait for with bated breaths – yes, the September extravaganza where the tech giant unveils its latest offerings for the year. This year, the event is reportedly scheduled for September 12th, which means the countdown has already begun. Less than two weeks to go, peeps! Yes, we are excited. Very excited. Apple, on the other hand, is working doubly hard to make sure everything just comes together well in time. However, its plans to make 4K movies available via iTunes have run into a bit of trouble.
According to a Wall Street Journal report, the company’s negotiations with Hollywood studios regarding the 4K movies project seem to have hit a snag, owing to a disagreement over pricing. It was widely reported that Apple was aiming at unveiling a new streaming media box – an upgrade to Apple TV – capable of playing 4K video content at the upcoming event, along with its new line-up of iPhones and a brand new smartwatch model. The device was expected to be rolled out by the end of this year.
Going against its grain, the company has been actually considering modest pricing for its 4K content. As per a report, Apple intends to sell these Ultra HD movies via iTunes for $19.99. However, Hollywood is clearly unhappy about Apple’s chosen price bracket and wants it to be increased by $5-$10. The tech giant’s decision to price its lineup of movies modestly seems to have stemmed from the alarming rate at which it has been losing market share in the recent years.
It is only logical that Apple wants to regain lost ground before it can think of maximizing profits. With the $20 price tag, it could well succeed in its plan to undercut some competition because other online movie marketplaces have relatively higher rates. Vudu, for example, is selling movies in the price bracket of $24.99-$29.99.
It may have a smart business move up its sleeve, but for now, it has to focus on the task of getting movie studios onboard with its lower price points for that launch event to go as per design.
