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apple Unveils online Movie Store

September 12, 2006

SAN FRANCISCO (AP) _ Apple Computer launched its long-awaited online movie service Tuesday with minimal participation from Hollywood and showed off a device that will make it easier for consumers to watch the videos on television.

The iTunes Music Store will only carry movies from The Walt Disney Co. studios, where Apple CEO Steve Jobs is a board member. By contrast, Amazon’s movie service launched last week with distribution deals with seven studios _ but not Disney.

At a media event Tuesday, Jobs also showed off a compact gadget, dubbed iTV, that will allow consumers to watch movies purchased online _ as well as other digital content stored on a computer _ on a connected television set. It will sell for $299 and be available early next year.

He said more than 75 films will be available from Walt Disney Pictures, Pixar, Touchstone Pictures and Miramax. New releases will be priced at $12.99, when pre-ordered and during the first week of sale, or $14.99 afterward. Library titles will be sold for $9.99 each.

Jobs also announced a new iPod nano with a 24-hour battery life and new games for the portable media player. The new iPods will come in five colors, and will sell for between $149 and $249.

Shares of Apple Computer Inc. were trading down 39 cents, at $72.11 in afternoon trading on the Nasdaq.

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