"Apple Computer Inc. and Amazon.com Inc. are both quietly negotiating with the studios to make movie downloads the next frontier, according to informed insiders."

"Wal-Mart made clear to the assembled studio home video reps, according to sources, that it does not view digital downloading favorably. And the prospect of Wal-Mart ordering fewer copies of just a title or two sends a chill into studio hearts."

"What is the right price for a high-resolution movie download? $5? $15? "The studios don't want to figure that out yet," one studio digital executive says, "not until digital downloads make real money, or Wal-Mart wants to get into that business."



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