Apple wants to have major Hollywood films available in ultra-high definition on the new device, expected to go on sale later this year. However, it wants to charge $19.99 for those movies—on par with what it sometimes charges for new HD movies, the people with knowledge of the discussions said. Several Hollywood studios want to charge $5 to $10 more for 4K movies, the people said.
The company is likely arguing that lower prices will help expand the category and generate more long-term revenue; however, studios are concerned about preserving profit margins and higher prices for better quality formats. “I wouldn’t tell Apple how to price their iPads,” an executive told the WSJ.
There's not much time for Apple to close deals. September 12th is fast approaching and Apple needs to tout 4K support as a major feature of its next generation streaming media player. The Apple TV has lost market share to Roku and Amazon, both of which offer a competing product for far less money. The feature could also help the iTunes Store which has been losing market share to Comcast and Amazon as well.