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Apple Inc is reportedly negotiating 4K movies with Hollywood studios ahead of the official debut of its new 4K Apple TV in September. Even though the iPhone maker wants to offer the movies at a lower price than the competition, movie producers don’t share the enthusiasm.
Apple wants to sell 4k movies for $20 via iTunes, while Hollywood would rather sell them for $25 to $30. Cheaper 4k films could encourage customers to buy the new Apple TVs, which are hemorrhaging customers to cheaper alternatives like the Roku.
Movie executives don’t want to tell the tech giant how to price its iPads, but they don’t want to budge prices either. They know that the iPhone maker is losing ground rapidly to Amazon, so it is desperately seeking a successful negotiation. Hollywood, on the other hand, should realize that the movies’ pricing is exaggerated.
Consumers perceive 4k movies as an alternative to the 3D movies at the theaters, so producers see it as an opportunity to charge more for an enhanced product. Plus, 4k movies are too large for streaming or buffering, so downloading them is more convenient.
Americans Consuming More and More Content
Now that more and more people can play the movie format on their television sets, 4k movies can become an extra revenue stream. Unfortunately, Hollywood is about to blow this chance.
The movie rental business has sharply declined in recent years because of subscription services such as Netflix or Hulu. In the meantime, the West is consuming more and more content. According to a recent survey, the average American consumed 10.2 hours per day of media last year. By 2019, that figure is expected to rise by 21 minutes.
Moreover, in 2016, 736 new movies hit the U.S. theaters, which is twice as many than 16 years ago. People tend less to re-watch their favorite shows or place value or an individual piece of content. However, Hollywood is poised to take advantage of the consumers who really want to own their movies or shows to make up for the consumer mentality of the rest of the public.
Image Source: Pixabay
