Apple and Microsoft Talking to Hollywood About Movie DownloadsApple and Microsoft Talking to Hollywood About Movie Downloads

Apple Computer and Microsoft are reportedly in talks with major Hollywood movie studios about video-download services that the companies would like to introduce in the coming year. At Apple, the sticking point is price: CEO Steve Jobs would like movies to cost just $9.99, about half what they're going for today at services such as CinemaNow and MovieLink. However, knowing Apple, those movies will almost certainly be low-quality 352 x 240 conversions aimed at the video iPod. If Apple can't get the studios to agree to standardized $9.99 pricing, it's possible the company will let older movies be sold for that price and go the more typical $20 price tag for newer ones. Word to the wise: That's fine, as long as they're DVD resolution or better