Category: Apple Stuff

Movies now available on iTunes Canada
Apple is opening its own online video store through iTunes in Canada, roughly two weeks after Bell Canada launched its own service.
Apple says it has more than 1,200 films for rent or purchase, with titles available the same day as their DVD release.
Films can be downloaded to either Mac or PC computers, unlike the Bell service which only works with PC computers using Microsoft Windows.
Both companies load the video files with copyright protections.
ITunes movies cost $9.99 to $19.99 to own and $3.99 to $4.99 to rent.
Bell movies cost $4.99 to $19.99 to own, while rentals cost $1.99 to $4.99.
ITunes customers have up to 30 days to start watching their film, and 48 hours to finish it once a movie has been started.
Bell customers also have 30 days to watch a film but only 24 hours to finish it once they hit play.
Appleís iTunes began selling TV shows in Canada in December, two years after launching a similar service in the United States.

Apple’s iTunes sells movies in U.S. on DVD release date
Apple Inc. announced Thursday that it is allowing U.S. customers to purchase films from its iTunes website on the same day they are released on DVD.
The introduction of the new service represents a shift for the major film studios, which previously had waited as much as 30 to 40 days after DVD distribution before offering new releases to the majority of video download services.
But Apple said it has partnered with most of the studios for its new offering, including 20th Century Fox, Disney, Warner Bros., Paramount, Universal and Sony Pictures Entertainment, as well as Lionsgate, Image Entertainment and First Look Studios.
Apple shares rose 2.5 per cent on the news, up $4.21 to $178.16 US as of midday in Nasdaq trading.
The service will allow US visitors to buy new release films for $14.99 US and older library titles for $9.99 US.
The announcement comes just three months after Apple announced users would be able to rent new release films through the iTunes store for $3.99.
New releases, however, are not yet available to customers in Canada through iTunes.
The decision by studios to allow users to either rent or own new release films could put added pressure on bricks-and-mortar retailers such as Blockbuster Inc.
Apple’s announcement confirms that the other major studios are in step with Time Warner, whose chief executive, Jeff Bawkes, said during a conference call on Wednesday that the company’s Warner Bros. studio would begin releasing movies for video-on-demand systems the same day they are released as DVDs.
That decision could open the door not only for online retailers like Apple and Amazon.com, but also spur use of cable pay-per-view systems or rental download systems like Apple TV.

Apple mulling ‘unlimited’ iTunes plan: report
Apple Inc. is reportedly in talks with major music companies to offer customers free access to its entire iTunes music library in exchange for paying a premium for its iPod and iPhone handheld devices.
According to a report in the Financial Times, the “all you can eat” model would be similar to the “Comes with Music” deal Nokia made with Universal Music last December, which allows users to buy a pre-programmed Nokia device with a year’s unlimited access to a subscription service featuring music from Universal’s catalogue.
The Financial Times said the discussions between the Cupertino, Calif.-based Apple and the major music companies hinges on how much Apple would offer its partners in exchange for access to their music libraries.
The report states that while Nokia is said to be offering $80 per handset to industry partners, Apple has so far only offered $20 per device.
For consumers, the cost of the music could either be bundled with the cost of the player or as part of a monthly subscription, although only the iPhone device already comes with a subscription.
The reported discussions, currently in the preliminary stages, would mark a major change in philosophy for Apple, which has previously maintained tight control over the prices and format of individual music or video downloads.
Apple has more than 80 per cent of the global digital music market. Its online iTunes stores are the second-largest retailer of music in the United States, trailing only Wal-Mart, according to a February study from consumer tracking firm NPD Group.
But major music companies have chafed at Apple’s success, becoming more vocal about wanting their share of profits from the sale of devices they say are built on their music catalogues.
While music downloads have increased, the same NPD Group study found the increase could not offset the continuing decline in physical CD sales, leading to an overall 10 per cent decrease in music spending ó to $40 US per capita from $44 US per capita among internet users.
As a result, record labels have been exploring other means of selling their music libraries.
Last fall, online retailer Amazon.com Inc. launched its own music store, reaching agreements with Universal Music Group, EMI Music Group PLC and later Warner Music to offer millions of songs without copy-protection technology.

Apple-Polishing Time for Studios
Each of the major studios has agreed to provide movies for Apple’s iTunes movie rental service, Apple chief Steve Jobs announced at the MacWorld conference in San Francisco Tuesday.
The inclusion of Universal and Sony were major surprises since each had indicated it would launch a similar service.
Moreover, Jobs said, the films could be downloaded and viewed on ordinary or high-definition TV sets via Apple’s settop box — without the use of a computer.
They would rent for $2.99 for older titles, $3.99 for newer ones — although “newer” is relative. Films will not become available on iTunes until at least 30 days after they are released on DVD.
HD movies will cost $1.00 more than conventional ones to rent.
Analysts pointed to other drawbacks: films can only be viewed for 24 hours — fine for home viewing but annoying for those downloading them onto iPods and iPhones for viewing in increments during their commutes, lunch breaks, or work-outs.
Moreover, only about 1,000 movies will be available when Apple’s video-rental store opens online in February.
Nevertheless, Apple’s maneuver received mostly positive response from analysts and newspaper critics.
Commented the London Times: “Apple’s move into video rentals, if successful, is likely to change fundamentally the economics of the film industry, and provoke yet more arguments over the way internet royalties are paid to writers.”
Also on Tuesday, Jobs unveiled a new, thin laptop computer, the MacBook Air — so thin that it does not sport a slot for playing DVDs.

Apple, Fox to offer iPod movie rentals
Apple Inc. is partnering with entertainment giant 20th Century Fox to offer movie rentals through its popular iTunes program, according to a news report.
Through the proposed online video-on-demand service, consumers will have the chance to download time-limited copies of Fox DVD releases, according to a source familiar with the deal cited in the Financial Times Thursday.
The deal is expected to be announced at the Macworld show in San Francisco on Jan. 14.
The news follows a similar move by Microsoft Corp. in 2006 in partnership with Xbox 360. Together, they launched a digital video download service that allows Xbox 360 owners to buy television shows and rent movies.
The service, which was made available to Canadians just this month, lets people with broadband internet connections purchase standard and high-definition content through the Marketplace store on its dedicated Xbox Live network.
However, analysts say the sheer strength of iTunes’ popularity will make the partnership between Apple and Fox highly lucrative for the two companies, including a boost in sales of video iPods.
“Fox and potentially other studios are coming around to the idea that there is nobody out there to challenge iTunes,” Jonathan Weitz, a principal with IBB consulting in the United States, told the Times.
“This deal is a sign that media mobility is coming to the mainstream.”
Apple shares hit the $200 mark for the first time Wednesday ó largely on the strength of the iPod brand. The company unveiled a new line of personal media devices this year, updating its flash-based Nano model to enable video playback as well as introducing the iPod Touch.
The touch-screen unit includes Wi-Fi wireless capability that allows users to connect to the internet, as well as Apple’s online music store iTunes and purchase songs.
According to the Times, new Fox DVD releases will include Apple’s FairPlay digital rights management system, allowing the films to be legally copied from the disc onto a computer or iPod.
Limited Disney, Paramount and other films are already for sale ó although not for rent ó through the iTunes platform.
Apple was also said to have been in negotiations with Sony, Paramount and Warner Brothers about similar deals to make their content available through the iTunes store.

iPod Nano commercial the Apple of singer Feist’s eye
NEW YORK (Billboard) – The use of Canadian singer-songwriter Feist’s song “1, 2, 3, 4” in an iPod Nano TV spot is generating major attention — online and on the Billboard charts.
Since the ad debuted in mid-September, sales of “1, 2, 3, 4” and its parent Cherrytree/Interscope album, “The Reminder,” have skyrocketed.
Earlier this month, the track was selling about 2,000 downloads per week, while the album was shifting 6,000, according to Nielsen SoundScan. On the most recent charts, “1, 2, 3, 4” clears 73,000 downloads and reaches new peaks of No. 7 on Hot Digital Songs and No. 28 on the Billboard Hot 100. “The Reminder” jumps from No. 36 to No. 28 on the Billboard 200, with sales of 19,000.
In total, “1, 2, 3, 4” and “The Reminder” have amassed sales of 181,000 and 235,000, respectively. (Feist’s debut album, 2005’s “Let It Die,” has sold 147,000 copies.)
While the iPod Nano spot is introducing Feist to mainstream America, online chatter is paving the way to sales of the singer’s music. Feist is not identified in the campaign — created by TBWA/Media Arts Lab — and this has led many consumers to the Web in search of the voice behind the song in the commercial.
According to Nielsen BuzzMetrics — which monitored such search terms as “1234,” “iPod,” “Nano” and “campaign” — Web discussion is increasing by triple-digit percentages weekly. In the days following the singer’s August 27 appearance on “Late Show With David Letterman,” where she performed “1, 2, 3, 4,” online buzz increased 190 percent. On the heels of Labor Day weekend, discussion of the iPod Nano ad soared 402 percent. One week later, there was a 166 percent spike in discussion.
Feist is the latest in a string of Interscope acts to appear in iPod/Apple commercials, including the Fratellis, Wolfmother, Eminem and U2.
And while bloggers have fueled rumors of a “deal” between the companies, Interscope Geffen A&M president of marketing and sales Steve Berman denied any such thing. (Apple and TBWA/Media Arts Lab declined to comment.)
“We have a great working relationship with them,” Berman said. “We are a company with much music that can be construed as left-of-center.”

Apple dramatically chops iPhone cost
SAN FRANCISCO ó Apple slashed the price of its popular iPhone to $399 Wednesday and introduced a new line of iPod media players aimed at dramatically boosting its holiday business.
Apple CEO Steve Jobs told USA TODAY that he expects finally to have digital music from the Beatles available via Apple’s iTunes Store by the middle of 2008. And he announced an alliance with coffee retailer Starbucks to sell music.
Jobs said Apple (AAPL) expects to ship the 1 millionth iPhone ó which just launched in June ó by the end of the month. “We want to put the pedal to the metal,” he said. “A holiday season is approaching.”
The heavily hyped iPhone originally sold for $499 and $599 with 4 or 8 gigabytes. Apple is eliminating the smaller model. The quick price cut angered some early buyers who paid that price.
But it “will really accelerate sales,” says Van Baker, an analyst with market tracker Gartner. “Apple skimmed the cream from the market in the initial months, and now they’re getting really aggressive.”
The new iPod Touch is a direct clone of the iPhone, minus the phone and built-in camera. The unit sells for $299 with 8 GB or $399 with 16 GB, and has the acclaimed 3.5-inch touchscreen from the iPhone and Wi-Fi wireless Internet capability.
Jobs also introduced a new version of the small Nano with added video functionality, multiple colors and more capacity. In refreshing the iPod line, Apple has either dramatically lowered prices or given products substantially more storage. The 80 GB iPod was $349; now a similar model is $249. The iPod Nano with 2 GB was $149, now it has 4 GB.
When iPhone and iPod Touch customers enter a Starbucks, they will be able to access iTunes from the in-store Wi-Fi network for free. Stores in Seattle, New York and San Francisco will get it this year. Starbucks expects most of the USA’s major markets to have it by the end of 2008. “The No. 1 question we get from our customers is, ‘What song is that?’ ” Starbucks Chairman Howard Schultz said.
Apple introduced a new version of its iTunes software Wednesday that lets customers make custom ring tones for the iPhone with songs they’ve purchased. The tones are available for 99 cents on top of the 99-cent song purchase. The company also said it has sold 3 billion songs, 95 million TV shows and 110 million iPods to date.
Apple competitor Microsoft, which has been struggling to get a foothold in digital music, said Wednesday it would cut the price of its underperforming Zune music player by $50, to $199 from $249. The Zune has 30 GB of storage.

Digital music services try to nibble away at Apple
DENVER (Billboard) – The digital music wars are entering a new phase.
Several digital music service providers — including MTV’s Urge, Rhapsody, Verizon Wireless, Wal-Mart and Yahoo Music — have unveiled new forays designed to shine light on their struggling services in the shadow of Apple’s still-dominant iTunes.
While no individual effort is likely to dislodge Apple from its No. 1 position, all are clearly efforts to chip away at its commanding lead. According to data from NPD Group, Apple controls 73.7 percent of the retail digital-music market, with more than 3 billion tracks sold since it went live. iTunes is also the third-largest music retailer of any kind, surpassed only by Best Buy and Wal-Mart.
REALNETWORKS, MTV, VERIZON WIRELESS
In perhaps the most significant move, the three providers have joined forces to offer one integrated digital-music platform that includes Rhapsody’s technology and music, editorial content and playlist programming from MTV’s Urge and wireless distribution via Verizon Wireless. MTV brings strong marketing muscle — to the tune of $230 million during the next five years, not to mention its on-air channels — plus well-received blogs and other resources that should improve on Rhapsody’s content. Verizon brings a mobile extension, something market leader iTunes still lacks. And Rhapsody brings the most popular subscription services on the market, its existing subscribers and back-end mobile technology.
The big bet, however, is on integration. Verizon will replace its Web-based digital music store with the new Rhapsody service and will send a copy of every song downloaded to a Verizon phone to the user’s Rhapsody account. And Rhapsody subscribers will be able to transfer subscription-based music to Rhapsody-compatible Verizon phones once they’re introduced later this year. But don’t expect to download subscription tracks over the air from Verizon phones just yet.
On paper it’s a strong alliance that emphasizes each partner’s strengths and eliminates their weaknesses in what MTV Networks president Van Toffler called a “perfect storm” of capabilities. Whether they can execute it is another story.
WAL-MART
The big-box retailer has started a public relations initiative to highlight the availability of digital-rights-management-free (read: iPod-compatible) music from EMI and Universal Music Group. This is a particularly big deal for Wal-Mart, which has not been able to translate its success as a physical retailer to digital music. While it is responsible for about 22 percent of physical CD sales, Wal-Mart has less than 2 percent market share among music services, despite undercutting the competition on price. Protected tracks are 11 cents cheaper than on iTunes, while DRM-free tracks are 35 cents cheaper.
But this probably won’t matter much until Wal-Mart can sell all its music without DRM, not just music from EMI and UMG. And the conservative company sells only edited versions of songs that otherwise would earn a parental advisory notice.
YAHOO MUSIC
Yahoo has unveiled plans to launch a Web-based music player that will allow current and non-subscribers to stream music from the service without requiring them to download the full Yahoo Music Unlimited software.
While its music portal receives more than 25 million unique hits per month, the Yahoo Music Unlimited subscription service continues to struggle for mass-market attention, just like every other subscription service out there.
According to Yahoo Music general manager Ian Rogers, the idea is to give its broader Internet community access to the same tools as subscribers and eventually convert them into paying members. Non-subscribers can hear only 30-second samples, while members can listen to the entire track.

iTunes retail test in the cards for Apple
NEW YORK (Billboard) – In a move to enhance its already prodigious stature as a music merchandiser, Apple will lead a test this fall that places artist- and album-specific iTunes gift cards in brick-and-mortar retail stores.
The iTunes gift cards, according to label and retail sources, will each feature specific album covers against a standard DVD-size cardboard backing. Albums by Maroon 5, Norah Jones and Eddie Vedder are under consideration for inclusion in the tests, which will run at Safeway, Starbucks and Best Buy. Wal-Mart and Target have been approached, but there is no word on whether those merchants will participate.
The test creates a dilemma for the major labels. On one hand, executives like the possibility that the gift cards could get music into stores that don’t carry it now. They also like the increased exposure for their artists. And they foresee a role for the gift cards in stores that already carry music but where music selection and CD sales are being reduced by store closures, inventory realignments and the CD format’s oncoming obsolescence.
iTunes is pitching its album-specific gift cards, which will feature the Apple and iTunes logos, as a way to get more music in existing shelf space at stores that already carry music.
One major-label distribution executive noted that when CD sales ultimately get weaker, anything that encourages music buying is to be welcomed.
But other executives worry that the gambit might in fact accelerate the demise of the CD. The strategy also will enhance the prominence of Apple, which already is perceived to be heavy-handed in wielding its clout with labels.
“It sounds like a way to help Apple get 50 percent market share,” one senior label executive said. A senior distribution executive added, “It’s ridiculous for Apple to negotiate with retailers on our behalf.”
Another distribution executive wondered why music retailers carrying CDs would go along with the idea, since it could drive more traffic to iTunes at the expense of brick-and-mortar merchants.
iTunes didn’t respond to requests for comment.
Meanwhile, sources suggest that single-album gift-card titles would be priced between $11.99 and $14.99 — above iTunes’ main album price point of $9.99 — but each could come with music videos and ringtones. It’s unclear if the labels would get their traditional wholesale cost of $7 per album.
For all his uneasiness over the idea, one executive conceded, “You have to give it to iTunes for trying to press their dominance in interesting ways.”

iTunes now selling John Lennon tracks
LOS ANGELES – Apple Inc. has begun selling downloads of tracks from 16 of John Lennon’s post-Beatles albums, including “Working Class Hero” and “John Lennon/Plastic Ono Band,” on iTunes, the company said Tuesday.
The albums represent Lennon’s recording output while he was with Capitol Records, a unit of Britain’s EMI Group PLC.
While many of the late singer-songwriter’s solo recordings have been available for download commercially elsewhere, this marks the first time they have been available on Apple’s market-leading online music service.
Songs on two albums ó “Lennon Legend” and “Acoustic” ó were being made available for download exclusively on iTunes, the company said.
Video content was also being included with the purchase of some of the albums for a limited time.
The Lennon tracks will also be available without copy-protection restrictions and in higher-quality audio for $1.29 each. Regular versions are priced at 99 cents each.
“John would have loved the fact that his music will now be available in a format suited to a new generation of listeners,” Lennon’s widow, Yoko Ono, said in a statement released by Apple.