As the controversy around Netflix swirls, Apple may be one of the competitors looking to take advantage of the open door. Apple is getting ready to put movies in the cloud, according to a report in the Los Angeles Times.
The Times reports that Apple reps have been talking with Hollywood studios to ink deals that would pave the way for consumers to buy movies through iTunes and access them on any Apple device. The Times cited anonymous sources. The service could launch in late 2011 or early 2012.
The rumor comes at the intersection of two announcements this week: Apple’s iCloud is live and the Digital Entertainment Content Ecosystem’s UltraViolet service has launched. The DECE is a consortium of Hollywood players that have created an online personal library that gives consumers access to movies and TV shows they purchase.
Streaming Content Everywhere
UltraViolet and iCloud are fairly similar. Once a movie or TV show has been added to a consumer’s UltraViolet library, consumers have options to stream it over the Internet, download it for offline viewing, or play it back on a disc. Consumers can watch the content on a mobile device, computer, television, gaming console or other enabled device.
By way of comparison, Apple’s iCloud lets consumers automatically download new music purchases to all their devices. Consumers can buy a song on the iPad and find it waiting for them on the iPhone with no syncing required. iTunes in iCloud also lets consumers download previously purchased iTunes content, including music and TV shows, at no additional cost. Movies would add a new element to the iCloud mix.
The movie studios seem to have plenty of motivation to cooperate with Apple. Although digital distribution is booming, online movie purchases are at the lower end of the profitability totem pole. According to ISH Screen digest, online…
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