Disney Is Lone Holdout From Apple's Plan to Sell 4K Movies for $20
September 12 2017 - 3:39PM
Dow Jones News
By Ben Fritz
Apple Inc. has signed new deals to sell movies in ultra
high-definition with every major Hollywood studio except the one
with which it has long been closest: Walt Disney Co.
At an event Tuesday where he announced the new Apple TV 4K, the
tech giant's head of software and services, Eddie Cue, said the
device will offer Hollywood movies in the high-resolution format,
called either 4K or UHD, for ultra-high definition. Logos for most
major studios briefly flashed on a screen behind Mr. Cue, including
Time Warner Inc.'s Warner Bros. and Comcast Corp.'s Universal
Pictures.
Mr. Cue said those studios' movies will be available in UHD at
the same price as high-definition movies. Participating studios
have agreed to a maximum price of $19.99 for 4K movies, currently
the highest price for HD movies, according to a person with
knowledge of the deal making. Apple had pushed studios not to raise
film prices above that threshold.
An Apple spokesman didn't immediately respond to a request for
comment.
The one absence from Apple's list of big studios selling movies
in UHD is Disney. It wasn't immediately clear why the company
behind Star Wars and Marvel couldn't reach an arrangement with
Apple. It currently sells its films in 4K on other digital stores,
such as Wal-Mart Stores Inc.'s Vudu, for $24.99.
A Disney spokesman declined to comment.
Disney's absence is particularly notable given a longstanding
close relationship between the two companies. Disney Chief
Executive Robert Iger is on Apple's board of directors and Disney
was the first studio to sell television shows and movies on
iTunes.
Some other Hollywood studios were concerned about the price for
UHD movies being too low, which led to negotiations going down to
the wire in recent weeks. Ultimately, however, all but Disney
reached an accord with Apple.
Write to Ben Fritz at ben.fritz@wsj.com
(END) Dow Jones Newswires
September 12, 2017 15:24 ET (19:24 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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