Apple may enter film market

Published: Wednesday, Sept. 6 2006 12:00 a.m. MDT

SAN JOSE, Calif. — Could the company that helped catapult the legal music download market with iPods and iTunes now kick-start the online movie market?

Rumors of Apple Computer Inc.'s plans to launch a movie download service gained momentum Tuesday after the company sent invitations to the media, saying "It's Showtime" next week.

The media event scheduled for Sept. 12 is set in San Francisco and coincides with the opening day of the Apple Expo in Paris.

Speculation of the iPod maker adding full-length feature films to its online iTunes Music Store have swirled for months. Already, the Cupertino, Calif., computer company has become a multimedia powerhouse with its song and TV show downloads. Analysts said it would only be a matter of time before Apple started distributing movies online.

Apple CEO Steve Jobs became a board member and the largest stockholder at The Walt Disney Co. earlier this year through Apple's acquisition of Pixar Animation Studios Inc., which Jobs also headed. That connection provides a natural toehold for Disney to be among the first to sign a distribution deal.

Apple's first experiment with a full-length TV movie on iTunes was last March when it started offering the Disney Channel's original TV movie, "High School Musical," for $9.99.

Also, analysts and industry observers expect Apple to soon introduce a new iPod player with a widescreen display — which would be better suited for viewing movies.

Apple representatives did not immediately return phone calls to comment.

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