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Apple and Hollywood studios in disagreement over pricing of 4K movies on iTunes

By Ian Chee & Cookie Monster - on 30 Aug 2017, 12:12pm

Apple and Hollywood studios in disagreement over pricing of 4K movies on iTunes

With a new Apple TV model expected to debut next month, the iPhone maker is reportedly at odds with Hollywood studios over the pricing of 4K videos on iTunes. While Apple wants to charge US$19.99 for major 4K movie titles, several Hollywood studios want to impose an extra surcharge of US$5 to US$10 to protect their profits since 4K movies are currently priced around US$30.

“I wouldn’t tell Apple how to price their iPads,” one studio executive involved in negotiations reportedly said. 

The disagreement stems from the different approaches to content pricing. Apple is said to prefer lower prices so that it can attract more customers and generate profit over the long term. On the other hand, Hollywood studios want to charge higher for premium content. 

It remains to be seen whether Apple is able to seal the deals before its rumored September event. Even though the company has prepared $1 billion to "procure and produce" content next year, a launch of the new Apple TV model with no 4K content would be embarrassing. 

Source: The Wall Street Journal via The Verge