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Movie downloads on iTunes: What do you think?

Movie downloads on iTunes: What do you think?

The Diffusion Group recently conducted a study to determine how the general public would take to an additional iTunes download service: feature-length films in digital format. The report, titled "On the Viability of an iTunes Movie Service," has been released strategically just before the upcoming Worldwide Developers Conference, for which Steve Jobs will be giving the keynote speech. As usual, speculation is running high about what new gadget the Apple head has up his sleeve this time--an iTunes movie service is among the guesses.

For TDG's full report, you'll have to plunk down a hefty chunk of change (try $1,495), but the company did release some key data regarding consumer interest in digital movie downloads. The results are predictable, with interest waning as price-per-download increases. At $10 per flick, 23 percent of broadband households showed interest in the service. The numbers declined to 14 percent at $15, 12 percent at $20, and 10 percent at $25. At which I scoff: $25 for a digital download?! One that you can no doubt not burn to DVD. No, thanks. What would you be willing to pay for a (presumably) high-quality digital download of your favorite movie? Better yet, do you think Jobs is really going to introduce such a service at the WWDC, or is it something else?