CUPERTINO, Calif., May 1 /PRNewswire-FirstCall/ — Apple(R) today announced that new movie releases from major film studios and premier independent studios are available for purchase on the iTunes(R) Store (http://www.itunes.com) on the same day as their DVD release. New releases and catalog titles will be available from 20th Century Fox, The Walt Disney Studios, Warner Bros., Paramount Pictures, Universal Studios Home Entertainment, Sony Pictures Entertainment, Lionsgate, Image Entertainment and First Look Studios. Movies purchased from iTunes can be viewed on an iPod(R) with video, iPhone(TM), Mac(R) or PC or on a widescreen TV with Apple TV(R), with new releases priced at $14.99 and most catalog titles at $9.99.

     “We’re thrilled to bring iTunes Store customers new films for purchase day-and-date with the DVD release,” said Eddy Cue, Apple’s vice president of iTunes. “We think movie fans will love being able to buy their favorites from major and independent studios.”

     New releases available for purchase on the iTunes Store this week, concurrent with their DVD release, include “American Gangster” and “The Diving Bell and the Butterfly.” Other popular titles now available for purchase include “Juno,” “Cloverfield,” “I Am Legend,” “There Will Be Blood,” “Alvin and the Chipmunks” and “Walk Hard: The Dewey Cox Story.”

     The iTunes Store is the world’s most popular online music, TV and movie store with a catalog of over six million songs, 600 TV shows and over 1,500 films including 200 in stunning high definition video. With Apple’s legendary ease of use, pioneering features such as new iTunes Movie Rentals, integrated podcasting support, iMix playlist sharing, the ability to turn previously purchased tracks into complete albums at a reduced price, and seamless integration with iPod and iPhone, the iTunes Store is the best way for Mac and PC users to legally discover, purchase and download music and video online.

     Pricing & Availability

     Movie purchases and rentals from the iTunes Store for Mac or Windows require iTunes 7.6.2, available as a free download immediately from http://www.itunes.com. iTunes movie purchases and rentals require a valid credit card with a billing address in the country of purchase. iTunes Movies are available in the US only and are $9.99 (US) for library title purchases and $14.99 (US) for new release purchases and $2.99 (US) for library title rentals and $3.99 (US) for new release rentals, and high definition rental versions are priced just one dollar more with library title rentals at $3.99 (US) and new release rentals at $4.99 (US). Short films are available to rent for 99 cents (US). Movies can be previewed, purchased and watched on iPod classic, iPod nano with video, iPod touch, iPhone and on a widescreen TV with Apple TV.

     Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone.

     (C) 2008 Apple Inc. All rights reserved. Apple, the Apple logo, Mac, Mac OS, Macintosh, iTunes, iPod, iPhone and Apple TV are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

Earnings were solid but the DVD rental site’s lower profit forecast, due to the cost of shifting to downloads and Blu-ray, sends shareholders scurrying

BusinessWeek reports that the once thriving Netflix may be in for a bit of a bumpy road ahead.

It has been a good year for Netflix shareholders, until now that is. After riding a 50% spike in the DVD-by-mail company’s shares, investors fled in droves on a first-quarter report that showed record sales and profits, but warned of slowing growth and higher costs.

Netflix had found a nice increase in subscribers after the recent rising of Blockbuster rates and ended the first quarter with 8.2 million subscribers, a 21% surge from the prior year.  However, with increasing technologies and costs that cut into profit margins, the company is treading ahead with careful footing aware that profits are clearly still under pressure.

While higher prices on Blu-ray rentals might scare some customers away, the effect on overall growth may be minimal. Analyst Jim Friedland of Cowen & Co. (COWN) pointed out in a research note published Apr. 22, “Blu-ray subscribers account for a low single-digit percentage of subscribers.”

In terms of movie downloads—currently offered free for PC viewing to existing subscribers—Netflix has nearly doubled the selection of titles from 5,000 at the end of 2007, to roughly 9,000 now. This rapid expansion means that costs to build-out the online channel are rising, Friedland says. “Netflix indicated that it eventually plans to charge for its online instant viewing service, but we expect it to remain free until the number of digital titles increases and a number of Netflix-to-TV devices become available,” he wrote. Netflix plans to release a set-top box made by South Korea’s LG Electronics later this year, and similar partnerships with other consumer electronics companies are expected.