by Chad Weirick — Saturday, May 3, 2008

iTunes To Lose Money On Same Day As DVD Deal

Apple recently came to an agreement with a group of film studios including the 6 largest that would enable the Cupertino firm to release movies via iTunes the same day that they are available on DVD.   The problem is that Apple might actually be taking a loss on them for the short term:

“Apple said that starting this week, iTunes customers will be able to purchase newly released movies for $14.99, while most catalog titles are $9.99.

The Wall Street Journal reported that Apple is paying the studios nearly $16 for each sale, but a source close to the negotiations told CNET News.com that Apple is paying closer to $15.50 than it is $16.”

It’s not unheard of for companies to take a loss on new products, especially if they think they can eventually charge more and/or negotiate cheaper rates from suppliers.
Tags:  itunes, DVD, Deal, OS, money, itu, NES, One, Ney, tunes, EA, AM
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