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September 01, 2006


Bryan Wheeler

What about the manufacturing costs? Let's not forget about bandwidth costs for hosting content. Granted, getting a movie from a studio to Apple is a one time affair, but Apple must absorb the bandwidth costs for every customer that downloads a movie. I doubt this is anywhere on the order of $3 per movie, but bulk video streaming can cost on the order of .1-.5 cents per minute for the low quality stuff on YouTube.



This is the end of Hollywood. Yes you heard me. Wal-Mart sent their rep to the studios just a few weeks back. He told them Wal-Mart wasn't happy with the apple deal. (Wal-Mart has been trying to do an online and instore DVD burning deal for at least a year). Hollywood's answer to Wal-Mart was a project with Amazon, Apple (Disney and one other studio only at this time), and several other online companies. I went to my local Wal-Mart yesterday. The DVD shelves are normally packed. Guess what. It is bare. Seeing the carts I don't think they were selling out of the copies. I couldn't ask for a better response from Hollywood. They just tict off their biggest income generator. Wal-Mart doesn't need hollywood. Just watch.

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