Apple’s 800 lb gorilla effect

http://www.businessweek.com/bwdaily/dnflash/content/aug2006/db20060831_806225.htm
Short summary: Walmart sells 40% of all DVDs. They pay $17 for new dvds, while Jobs (the largest disney shareholder) got Disney to charge only $14 to Apple for video downloads. So Walmart is pissed off and wants lower DVD prices, which may mean lower prices for DVDs everywhere.

And Jobs was originally trying to sell all movies for $9.99 (nice & simple like the $.99 song), which means an even lower wholesale price in the future. Good for mr. jobs.

Looks like the studios are starting to fear Apple as the 800 lb gorilla, though. Apple being the middleman by which all future media flows — who needs cable when you’ve got itv & itunes & can just watch that whole 24 season instead of waiting every week? ‘less Microsoft can Zune them.

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