MGM Joins the iTunes Revolution

by Playfuls Staff | 12th April 2007

MGM Joins the iTunes RevolutionLast year Amazon tried to keep a few steps in front of Apple, by announcing the release of Amazon Unbox merely days before the event where Jobs presented the introduction of movies on iTunes. [more]

Amazon Unbox benefited from important support from numerous production companies and television studios, and held the advantage of running on any PC. iTunes looked like a certain victim, at least as far as video content goes.

Although he had been negotiating with movie studios for some months (or so it was rumored), Steve Jobs didn’t manage to convince anybody. As a result, iTunes opened its doors with only a few Disney titles.

The apple of discord between Jobs and movie studios seems to have been iTunes’ pricing policy. The Apple boss pleaded for unitary pricing scheme while movie studios didn’t want to repeat the experience music studios had been through and asked for differentiated prices.The catalog of movies available on Amazon Unbox was therefore much fuller and more varied.

It has been only a few months and ITunes Movies Store, adopting the small-but-certain-steps approach has succeeded in convincing Lionsgate and Paramount Pictures to join in.

iTunes registered a new victory yesterday, when MGM announced that it would soon start selling its movies through iTunes. Apple’s online store’s catalog has 500 new titles now, and MGM promises more additions within the next weeks.

As was expected, MGM movies can be watched on iPod, Mac and PC, as well as on Apple’s latest technological marvel, Apple TV.

Although its partnership with MGM is an undeniable victory for iTunes, Apple still has to convince Warner Bros, Sony Pictures and Universal before the offer is complete. Don’t be too surprised if, over the following months, iTunes announces partnerships with the above-mentioned movie studios.

While celebrating 100 million sold iPods some days go, Apple announced that in the time elapsed since iTunes Movie Store’s launch the company has sold 2 million movies.

Is this the main argument that persuaded MGM to embark on the iTunes ship?

Amazon Unbox has not made public any details concerning the number of movies sold or any other figures that would indicate its performances.

Has Apple begun the success it had in the industry music with cinema? Will Apple TV + iTunes become in the Hollywood industry what IPod + iTunes has been for music? If Apple manages to convince the rest of the movie studios to collaborate, the answer is ‘yes.’ Until then, the correct response is ‘maybe.’


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