Apple 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