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Tuesday, September 12, 2006

Computer Business Apple Expected to Start Selling Movie Downloads and New iPods

Yesterday a buzz surrounded the anticipated announcement from computer business Apple Computer Inc. that it would start offering full-length Hollywood movie downloads. This announcement is expected to happen during a scheduled event today in San Francisco that might also bring about the computer business’ declaration that it will soon reveal new versions of the iPod. This is expected to be one of the biggest announcements from Apple since it stated it would start using Intel chips in its computers.

Many experts are speculating that today’s gadget-related announcement from the computer business will set off a long line of consumer-gadget announcements. The new iPods are expected to sport higher-capacity based on flash memory that will replace Nano and Shuffle models and perhaps even update the video iPod.

Apple is expected to add movie downloads to the popular iTunes store that already has extensive music downloads and even video files, including episodes of television programs. According to experts, if the computer business starts selling movies through the iTunes service, it could improve sales of its iPod and also get into the home theatre market that could help it get in on the multi-million dollar enterprise of DVD rental and sales. Still, at least initially, many analysts think that Apple will so undercut prices of major DVD companies that they will fear competition and not want to sell products through the iTunes Store. Still, Apple will most likely get many major studios on-board for this new offering and will probably offer very few options for pricing.

While computer business Apple has not confirmed the announcement of a Hollywood movie offering, the invitation to today’s event, stating only “It’s Showtime” hint that at least one announcement will involve films.

Since Apple revealed its latest upgraded iPod last September that plays videos it has sold over 35 million videos from a collection of 9,000 music videos and episodes of over 200 television programs, along with an ever-expanding music audio library that boasts three million songs.

Many technology executives feel that selling movies online will be the next great breakthrough in downloadable entertainment, the last great way to change the face of the consumer home entertainment market.

Blogged By: Joshua Feinberg