Apple (AAPL) iTunes Means To Murder DVDs

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Apple (AAPL) plans to release major movie titles on iTunes as the same time they come out on DVD. That is while the DVD business is still around.

According to The Hollywood Reporter "The new arrangement with the studios is expected to involve Fox, Walt Disney Studios, Warner Bros., Paramount, Universal, Sony Pictures, Lionsgate and New Line."

The studios are taking a great risk. They now make a large amount of their revenue, and larger amount of their profits, from DVD sales. If the contracts with Apple are not as lucrative on a per title basis, earnings at the movie-makers are likely to fall.

But, Apple may not have given them many options. New song, old tune.

Douglas A. McIntyre