Apple, studios reach iTunes movie deal

Published 5:00 am Friday, May 2, 2008

SAN FRANCISCO — Apple Inc. said Thursday that it would begin selling new-release movies through its iTunes online store on the same day they are released on DVD in stores.

The movie studios’ agreement with Apple puts the Cupertino, Calif., company on the same playing field as traditional retailers and demonstrates that Hollywood is growing more comfortable with digital downloads.

Chief Executive Steve Jobs announced in January that Apple had reached partnerships with all the major studios to sell or rent movie downloads. But the studios wouldn’t provide their movies for download until 30 days after DVDs went on sale through such retailers as Wal-Mart Stores Inc., Target Corp. and Best Buy Co.

Analysts cautioned that the 30-day delay would hurt iTunes. The company said in January that it had sold 7 million movies. It has not provided updated sales figures.

— From wire reports

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