Apple offers movie rentals for the UK and Canada
2:23 am, June 6th, 2008, Craig Grannell
Brits (and Canadians) finally got to join the iTunes movie party this week, with Apple unleashing movie rentals and purchasing for the two territories. I’d actually been mulling over grabbing an Apple TV for a while (what with my ten-year-old DVD player starting to make strange buzzing and wheezing noises), but decided against it. Instead, I bought a cheap replacement DVD player and an iPod dock, and so I was initially feeling a little irked.
And then I looked at the prices and felt much better. In the UK, rental pricing initially doesn’t seem too awful at £2.49 for old stuff and £3.49 for shiny new films, which is mostly on a par with high-street rental outlets such as Blockbuster and DVD-by-mail companies. However, this is the realm of digital, and so there aren’t as many barriers to business regarding upkeep, location, shipping, and so on. A swift comparison with the US store sees that Apple’s making an extra $2 on library titles and $3 on new releases (the price of which almost doubles during a film’s trip across the Atlantic). Take into account taxes, and the extra profit is reduced, but still pretty hefty. On the plus side, you do at least get a 48-hour window to watch, which is a small added bonus.
However, it’s the purchase price-tags that really have me confused. They come in at £6.99 for library titles and £10.99 for new releases (the latter of which is $14.99—about £7.50—in the US). Even when you add on British taxes, this doesn’t look like a great deal, and with the usual raft of cheap outlets available (HMV, Play.com, Amazon UK), I fail to see how Apple will make a dent in the market with this pricing model.
Commentators are already saying this pricing has nothing to do with Apple (“Blame the movie studios!” “Apple is innocent!” “I wuv Apple and will GET YOU if you write bad things about Stevie!”), and how it’s more expensive to do business in the UK (blah, blah, blah), but this just reminds me of Adobe doubling CS3’s pricing when it goes across the Atlantic and offering a toothy grin in return.
With hardware, there’s now very little difference when taxes are taken into account, and I’m happy for Apple to mark things up a little in case Sterling tanks or the US Dollar rallies. In software, pricing is generally getting better (if you pretend CS3—something of an exception—doesn’t exist), and Apple again is gradually taking the piss less and less with each new release.
So why does the difference in pricing remain in media, when there’s no shipping, no printed artwork, and no shelf-space required? Apple always makes a point about thinking different, but in this case, it looks like the company’s done a quick price-check of its rivals and is thinking exactly the same.
Posted by Craig Grannell in AppleTV, News, iTunes | Comment on this article
I don’t know the how all this international pricing works, but it may have something to do with the price vs. physical DVD. Checking the UK Amazon store I see many movies are around £12, here they’re about $16. I guess the rule is take off a quid or a buck and you’ve got the itunes price.
nak, on June 6th, 2008 at 2:57 am
That possibly great opportunity. Still cheaper compared with Amazon.com Store
dienlux, on June 6th, 2008 at 5:15 am
Would it ever work to have everyone switch to a standard form of money?! It’s kind of like the world using the metric system, besides the US, would it cause huge problems to standardize money. I’m no economist, but it’s just a thought
Ryan Ray, on June 6th, 2008 at 8:41 am
Even if they entire world used the same currency there would still be geographic price differences. A DVD in the UK would still cost more than in the US just the way gas costs more in California than in Oregon.
nak, on June 6th, 2008 at 4:56 pm