iTunes Movie Store Coming

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is reporting that Apple will be adding $14.99 new releases and $9.99 back catalog movie downloads to their already hep and happening iTunes service… and it’s happening this month.

A little bird also told us that a major player, either Sony or Universal, is now ripping their entire back catalog – from 1999 onwards – to digital. The compression algorithm is a huge secret and this bird doesn’t quite know if these are for iTunes or for someone else’s store.

Considering that the average DVD costs about $17, a $14.99 protected movie – ahem – downloaded to a fancy new touchscreen iPod or Zune will definitely rip the DVD sales and rental market a new orifice. That said, Amazon is also planning this same thing, which means competition is going to get hot and heavy this holiday season. This also means that Apple had better think about refreshing the video iPod in the next few weeks or there’s going to be some pushback as customers flock towards larger, widescreen portable video players.

iTunes To Have Movie Downloads This Month [TechCrunch]

Movie Downloads on iTunes By Mid-September [BusinessWeek Online]

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