The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Analyst: Apple Revolutionizing Movies

Analyst: Apple Revolutionizing Movies

by , 12:55 PM EST, January 17th, 2008

Apple's new iTunes movie rental service may not have been an overwhelming surprise when CEO Steve Jobs announced it during his keynote presentation at Macworld Expo 2008, but it may herald the beginning of a revolution in the movie industry. The deal with the movie studios will likely turn out to be far more significant than most give credit for, according to American Technology Research analyst Shaw Wu.

"On the surface, the announcements look underwhelming and somewhat expected," he said. "However, we think when looking back several years from now the iTunes Movie Rentals announcement will likely end up being a landmark event and potential game-changer."

The big surprise for most wasn't that Apple launched its movie rental service, but instead that the company struck deals with all of the major film studios including Fox, Disney, Warner, Paramount, Universal, Sony, MGM, Lionsgate, and New Line Cinema. The general consensus was that Apple would launch its rental service with only one or two studios.

"We find this quite impressive in light of Apple's sometimes tough relationship with content providers and their fear of Apple's domination of online content," he said.

The ability to rent and download may also lead to higher Apple TV sales, turning the home theater appliance into "a real business" according to Mr. Wu.

Mr. Wu is maintaining his "Buy" rating and US$210 target price for Apple's stock. Apple is currently trading at $159.50, down 0.14 (0.09%).


If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.

Recent Headlines - Updated January 29th

Wed,7:40 PM
ACM 291: Apple’s Massive Numbers and the Rosetta Stone for Apple Timing
5:30 PM
One Way Apple Could Help Us Find Apple Pay Locations
3:47 PM
Aaron Sorkin’s Steve Jobs Movie Starts Filming with Michael Fassbender as Jobs
2:45 PM
Revogi Smart Color Bluetooth LED Bulb: $34.99
1:20 PM
My Love/Hate Relationship with Apple’s Handoff and Continuity
1:17 PM
TMO Daily Observations 2015-01-28: AAPL Q1 2015 Earnings, YouTube Dumps Flash
11:01 AM
How to Restore Missing iPhoto Image Thumbnails
9:18 AM
YouTube Puts Another Nail in Flash’s Coffin with HTML5 on the Desktop
Tue,7:52 PM
Apple Blocks Flash on the Mac Following Major Security Exploit
7:46 PM
Apple Ups the Secrecy with Wall Street
5:25 PM
Apple Pay Dominates Mobile Payment Platforms, Coming to Vending Machines [Updated]
5:15 PM
Tim Cook Says Apple Watch Will Ship in April
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!