It looks like the final stages are being entered for iTunes to close a deal with all the major Hollywood studios for distribution of their movies over iTunes very very soon. But one little thing has gone wrong… at least for us the consumers.
Steve Jobs has apparently tried to convince the studios to agree to a flat rate of $9.99 per movie, much like the flat $.99 per song model they use for music. This is a no brainer right? Look at how successful the flat rate music model has worked. It’s an easy decision for the studios to agree to this right? WRONG!
According to Variety, the studios are willing to charge $9.99 per movie for their oldest and least popular films. However, they want to be able to charge up to $19.99 per movie for the more popular stuff. ARE THESE MORONS INSANE!?!?!?!
I don’t get it. There is a proven business model right in front of your face that has been working like a charm. Everyone is happy with it. The music studios are making money, the fans are happy, Apple is happy… it’s a perfect senario! But no… the Studios want more:
“We can’t be put in a position where we lose the ability to price our most popular content higher than less popular stuff,” said a studio exec close to the negotiations.
Oh right… because people are going to LOVE paying more for a downloaded movie than for an actual disk. MORONS!!! The flat rate model that Apple has used WORKS!!! Everyone is making money! The fans are happy! WHY ON EARTH DON’T YOU WANT THAT TOO!?!?!
Dispite the fact that we often mock and critisize Hollywood, the fact of the matter is that some of the most brilliant minds in the world work there… it just amazes me how some people who are so smart, can at the same time act so bloody dumb. WAKE UP!
