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Pali Research's Richard Greenfield claims that Apple is prepared to accept higher prices to assuage demands from the majority of studios that have so far declined to sell movies through iTunes. To date only Disney, where Apple chief executive Steve Jobs is the largest individual shareholder and a board member, and Paramount have signed up.

Studios have demanded higher prices both to increase their share of iTunes revenues and to avoid upsetting DVD retailers, such as Wal-Mart. Apple has relented and Greenfield believes that

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it has agreed to a $15 wholesale price for a digital movie, compared to about $18 for a DVD. That extra $3 buys extra bonus features and a disc that plays just about anywhere, whereas iTunes movies are restricted to a limited number of computers, iPods and Apple TV boxes.

According to Greenfield, Twentieth Century Fox is planning to sell new releases and back catalogue titles from early next year.

Greenfield also says that studios are hoping to introduce premium DVDs that include a copy of the move that can be transferred to an iPod or computer. Last month Twentieth Century Fox and Warner Bros announced the first discs with an additional "digital copy", but they are restricted to devices compatible with Microsoft's Windows Media DRM, and that excludes iPods.

Higher prices may also persuade Hollywood to begin selling movie downloads outside the US, though complicated international licensing deals present a considerable obstacle.

Neither the studios nor Apple are saying anything on the matter.