Report: Apple readying movie iCloud service?

Streaming movies appears to be the next major offering for users of Apple Inc.’s new iCloud service, if Apple’s talks with major studios succeed. Apple representatives are meeting with studios for deals that can let consumers buy movies via iTunes and watch them on Apple devices, the Los Angeles Times reported. Quoting people knowledgeable about the situation, the LA Times said Apple’s proposal allows users to stream movies they buy via iTunes on devices like the Apple TV, iPhones and iPads - and even on PCs. The report added the new service may launch in late 2011 or early 2012. But the LA Times report said a spokesman for Apple declined to comment. Earlier this week, Apple began rolling out iOS 5, an updated operating system for mobile devices such as iPods, iPhones and iPads. While iOS 5 enables users to access music, photos, and some other media from the cloud, it does not yet access movies. Ultraviolet The reported talks between Apple and studios come as the first movies from the multi-studio venture Ultraviolet are launching this week, including Warner Bros.’ “Horrible Bosses" and “Green Lantern." With Ultraviolet, a cloud-based storage locker service, people who buy DVDs or Blu-ray discs for selected movies will have access to digital cloud copies they can instantly watch on their Internet-connected TVs, smartphones and tablet computers. Ultraviolet purchases via the Web without discs are expected to come in 2012, the LA Times said. The LA Times report said every major studio except Disney is working on Ultraviolet with a large group of retailers and electronics companies that does not include Apple. According to the LA Times report, the studios are eager to boost purchases of movies amid competition from cheaper video on demand and Netflix and Redbox rentals. On the other hand, despite the increasing popularity of digital distribution, online movie purchases are expected to bring in only $231 million this year, about the same as in 2010, IHS Screen Digest said. Welcoming Apple The LA Times report quoted people familiar with the thinking of several studio executives as saying they would be happy to see Apple join as well, since it accounts for 66 percent of online movie sales and rentals. “This is going to be a huge boost to a struggling online movie business. Apple is going to make it work right off the bat," said Arash Amel, digital media research director for IHS. Amel added building a cloud movie business without iTunes would be difficult as it accounts for 66 percent of online movie sales and rentals. The LA Times also noted that while Apple is not part of Ultraviolet, its devices could be compatible. It said the people who have talked to Apple representatives said the company is considering allowing people who buy and store movies with Ultraviolet to easily watch them on Apple devices via apps. That would be a big help to Ultraviolet, as Apple dominates the market for tablets and is one of the top two players in smartphones. But movies bought on iTunes would continue to work only on Apple devices and computers, as Apple makes its biggest profits on hardware and wants to encourage people to keep buying its digital devices. — RSJ, GMA News