Movies in the palm of your hand
See "Jobs wants movie role" (database, page 4)By Jon Fernquest
[Introduction|Vocabulary|Article]
[Reading Questions|Answers]
|
Apple Computers and Steve Jobs are trying to get full length feature films added to the array of videos you can download and watch on your iPod.
Like any new innovation, there are people who stand to lose from this new idea. Stores that sell lots of DVDs like Wal-Mart will definitely lose. IPod movies will cannibalize the market for DVDs, drawing customers away from DVDs to the ease of the iPod.
Reading Questions
Here are some questions to guide your reading (See answers at end):1. How much are people paying for music videos from iTunes? (Note: inference required)
2. How much are people paying for TV programs from iTunes?
3. How much does Jobs think people will pay to download movies from iTunes?
4. When does Jobs hope to have a deal with movie companies by?
5. What company was the first to offer TV shows for the iPod?
6. What special relationship does Jobs have with Disney that might help him make a business deal with Disney?
7. What started this special relationship?
8. Are Apple's negotiations with movie companies public or private?
9. This isn't the first time the idea of selling movies for the iPod has come up. What is different about this time?
10. What major problem do they have to overcome in negotiations?
11. Will there be a single price for movie downloads like there is for music downloads?
12. Is the current resolution of iPod videos high enough to watch on a computer or TV?
13. What other products is Apple planning for the near future?
Article
Jobs wants movie role
EDUARDO PORTER
LAURA M. HOLSON
New York - Consumers have been willing to spend 99 cents to buy Shakira's "Hips Don't Lie'' or $1.99 for an episode of Desperate Housewives from iTunes.
Now Steve Jobs is betting they will also pay $9.99 to download The Godfather to play on their iPods.
For weeks, Apple Computer has been talking with executives at all the major studios - including Walt Disney, 20th Century Fox,Warner Brothers and Universal Studios - about adding movies to its popular iTunes music store, several people involved in the negotiations said.
Jobs, who is Apple's chief executive, has been participating in the negotiations and telling studio executives in Los Angeles that he wants to have a deal in place by the fall, people involved in the negotiations said.
Disney, which was the first studio to put some TV shows (like Lost and Desperate Housewives) on iTunes, is also expected to be the first to put some movies on Apple's online service, the people involved in the talks said.
Moreover, Jobs will attend his first Disney board meeting later this month. He became a director when the company acquired Pixar Animation Studios, where he had been a founder and chief executive.
An Apple spokeswoman said that the company would not comment on what she called rumours. The individuals asked not to be identified because the negotiations were confidential.
It is not the first time the studios and Jobs have discussed selling movies online. But the recent talks are more serious.
While Jobs is getting resistance from some studios, they are more open to the idea since most now offer their television shows on iTunes.
"Steve wants to get this done, and the studios want to reach an agreement, too,'' said one inside person.
But people involved in the negotiations said there were several potential snags, including fears about piracy and Jobs' proposal to charge a flat price of $9.99 for movies already sold on DVD.
Studios are concerned about preserving relationships with traditional partners, including theaters and retailers. In particular, one person involved said a price of $9.99 for a movie would undercut the price Wal-Mart charges for DVDs.
Under Jobs' proposed plan, there will be several prices for movies, depending on when they have their debut on iTunes. The prices have not yet been determined, but some studios are worried about releasing movies too close to their theatrical release dates. The current window for a DVD release is four months after a movie hits theaters.
"Everyone is pushing back on this,'' said another person apprised of the talks.
The reports of Apple's discussions with movie studios have renewed speculation that Apple is preparing to offer a living room-oriented entertainment device later this year, in time for the Christmas season.
The TV programs and music videos sold on iTunes are low-resolution videos appropriate for viewing on the iPod. But they offer inadequate display quality when viewed on a Macintosh computer.
Apple has over the last year introduced its hand-held remote control and a television-oriented on-screen control system called Front Row. The current Apple video system, which competes with Microsoft's Media Center PC software, is now oriented toward Apple's computers.
There has been speculation during the last year that Jobs is planning to use the Internet to deliver high-definition video directly to consumers. NYT
Vocabulary
cannibalize - when the introduction of a new product reduces the sales of an older product
episode - one story in a series of TV programs
have a deal in place - finish making a deal
confidential - private and secret
open to the idea - willing to at least think and talk about the idea
snags - problems
charge a flat price - fix the price
preserving relationships with traditional partners - trying not to do anything that would make the people you are already working with angry and stop working with you
undercut the price - charge a lower price (to be more competitive)
debut - first appearance (like when a product is first introduced into a market or a movie starts playing in the theatres)
theatrical release dates - the dates when a movie is first shown in movie theatres
Everyone is pushing back on this - the people who Jobs is negotiating with want later release dates
apprised of something - information or a notice has been given to someone
renewed speculation - people have started to talk about what might happen next again
living room-oriented - used in the living room (like a television set)
low-resolution videos - video without a lot of detail in the picture (viewed in a small size it is okay, but in a large size it will be blurred)
high-definition video - video with lots of detail, high resolution video
Answer Key:
1. How much are people paying for music videos from iTunes? (Note: inference required)
About 99 cents (about 40 baht).
2. How much are people paying for TV programs from iTunes?
About $1.99 (about 80 baht).
3. How much does Jobs think people will pay to download movies from iTunes?
About $9.99 [about 400 baht].
4. When does Jobs hope to have a deal with movie companies by?
He hopes to have a deal by fall season this year. Fall lasts from about September 23 to December 21 in the United States.
5. What company was the first to offer TV shows for the iPod?
Disney was the first. Disney is also likely to be the first to offer movies.
6. What special relationship does Jobs have with Disney that might help him make a business deal with Disney?
Jobs is on the Disney board of directors.
7. What started this special relationship?
Jobs joined the board of directors when Disney bought Pixar Animation, a company that Jobs founded.
8. Are Apple's negotiations with movie companies public or private?
They are private (confidential). We only have rumours.
9. This isn't the first time the idea of selling movies for the iPod has come up. What is different about this time?
This time the negotiations are more serious. Movie companies are more open to the idea because they are already selling TV programs for the iPod. Both Jobs and the movie companies want to make a deal.
10. What major problem do they have to overcome in negotiations?
Movie companies want to preserve good relationships with the customers they already have. If they undercut the price, traditional movie buyers will shift from big retailers like Wal-Mart to iTunes.
11. Will there be a single price for movie downloads like there is for music downloads?
No, there will be many prices that depend on factors like release date (debut).
12. Is the current resolution of iPod videos high enough to watch on a computer or TV?
No, iPod videos are currently low resolution and the display quality is not enough to view on a computer or television.
13. What other products is Apple planning for the near future?
There are rumours that Apple will offer a larger entertainment device for the living room in time for Christmas. They also might use the internet to deliver very high quality video.