Apple (AAPL) has signed a deal with News Corp’s (NWS) to rent Fox studio movies on iTunes. Apple looks at it as something of a break-through. iTunes subscribers have been reluctant to buy movies.
“Fox and potentially other studios are coming around to the idea that there is nobody out there to challenge iTunes,” said Jonathan Weitz, a principal with IBB Consulting quoted in the FT.
But, most industry experts note that Apple has not done very well selling video. A look at the iTunes site shows that most videos rent for about $12. It is hard to imagine that this is a barrier to consumers wanting to get TV and movie offerings.
The explanation may be much more simple. People do not want to watch video content on a 2 inch by 2 inch screen. It is simply too hard to see. Music listening is not "screen dependent" at all.
Video is not a "little screen" product, no matter how many deals Apple does.
Douglas A. McIntyre
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