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Report: Apple Eyes Early Access to New Movies

Apple is in talks with major movie studios to launch "high-priced home-video rentals."

By Stephanie Mlot
December 8, 2016
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Going to the movies seems like a luxury fewer people can afford these days. But why endure broken seats, sticky floors, and murmuring audiences when you could watch the latest films from the comfort of your own home?

That's the million-dollar question Apple is trying to answer.

Apple is reportedly in talks with major movie studios to gain earlier access to new releases for distribution via iTunes.

According to Bloomberg, 21st Century Fox, Warner Bros., and Universal Pictures—three of the five top-grossing distributors—are eyeing "high-priced home-video rentals" of new movies soon after they open in theaters.

Though details are scant, Bloomberg cited "people with knowledge of the matter," who tipped a premium-priced online rental service, estimated to cost between $25 and $50 for viewing priority per movie.

But studios are concerned about security: The leak or piracy of a movie that's still in theaters could threaten profits. A big question Apple needs to answer before the studios consider opening up access is how secure iTunes really is, and whether its encryption can be trusted for movies that will be in high demand for piracy?

Apple, 21st Century Fox and Universal declined to comment on the report; Warner Bros. did not immediately respond to PCMag's request for comment.

Internet mogul Sean Parker, best known as the dude who co-founded Napster, in March launched the Screening Room startup, which makes "secure anti-piracy technology that will offer new releases in the home on the same day they hit theaters."

The privilege, of course, comes at a price: Screening Room charges $150 for a set-top box capable of transmitting the latest flicks to your TV, plus $50 per rental, which you have 48 hours to view before it disappears.

Major movie studios attempted the same thing about five years ago, but faced pushback from theater owners. In 2013, Prima Cinemas teamed up with Universal for a similar solution—that cost more than $35,000.

Editor's Note: This story was updated at 11:15 a.m. ET with a response from Universal Pictures, and again at 12:53 p.m. ET with a response from Apple.

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About Stephanie Mlot

Contributor

Stephanie Mlot

B.A. in Journalism & Public Relations with minor in Communications Media from Indiana University of Pennsylvania (IUP)

Reporter at The Frederick News-Post (2008-2012)

Reporter for PCMag and Geek.com (RIP) (2012-present)

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