Dan Cryan / Published - 21 Nov 07

Major Studios and Apple have failed to reach an agreement regarding download-to-own (DTO) movies on European iTunes stores for 2007. Consequently, we are lowering our DTO consumer spend and trade revenue forecasts. But the larger issue still remains the Studios' reluctance to adopt a more expansive digital strategy. Specifically, fears around dominant platforms, price erosion, piracy and upsetting powerful customers are stalling the entire market before it has a chance to get off the ground.