Wednesday, September 06, 2006

Next step for Apple: movie downloads

Apple Computer Inc. indicated that chief executive Steve Jobs will outline plans next week to sell full-length movies through its iTunes music and video store.
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Apple sent invitations for a Sept. 12 event in San Francisco, featuring the company's logo bathed in the klieg lights often used at Hollywood premieres.

Jobs probably will reveal a service to download feature movies, said Benjamin Reitzes, an analyst with UBS AG in New York.

That would strengthen Apple's position as the leading supplier of digital entertainment as rivals including Microsoft Corp. and Myspace.com target customers with new products. Apple also may introduce new iPods, including a video iPod with a larger screen than the current 2.5-inch display.

Jobs may also unveil an 8-gigabyte version of the pencil-thin Nano that will hold 2,000 songs, twice as many as the current model, said Gene Munster, an analyst with Piper Jaffray Cos.

``Apple is establishing itself as the leader in the digital home entertainment market," Reitzes said in a research note.

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