Rather than block the distribution of digital versions of their films, Lionsgate’s decided if you can’t beat them, join them. The film and television producer is now working with Apple to offer up free digital versions of their movies on iTunes with the purchase of DVDs.

Businessweek reported that the company is releasing digital copies of “Rambo” and “The Eye” free to customers who buy the special edition DVD and Blu-ray versions. Rambo should be available on May 27 and The Eye will follow sooth in the summer. The iTunes availability should come later.

How do customers redeem their downloads? It’s just a matter of inserting the DVDs into their computers, entering a code into iTunes and then the film will be sent to their iTunes library. Twentieth Century Fox has a similar deal with iTunes to also distribute digital copies with their DVDs.

Though digital downloads seem a great deal to consumers, the market wasn’t quite as kind – Apple shares saw a fall of $1.12 to $121.13, while Lionsgate shares fell 6 cents to $8.74.

It’s not really much of a risk for Lionsgate and hardly the sweetest of deals since they’re only giving digital copies with purchase of the more expensive versions of DVDs. Will free digital downloads be enough to entice consumers to shell out more money for those two movies? If Lionsgate was a little less cautious and offered more title variety, then perhaps this venture might attract more buyers. Not that I’m knocking the latest Rambo installment but The Eye? I’m sure Lionsgate has better choices than that film – I’d be hard-pressed to persuade myself to buy the normal DVD for that film.

I still say that film studios are playing a bit too safe with the whole digital media thing; people are doing it for free already, so why not make it easier to download them the legal way? Consider it a means of increasing their distribution and taking it beyond ordinary retail, instead of getting all panicky that consumers will stop actually going out to see films. The VHS didn’t kill cinema and neither will the DVD or iTunes. Here’s to hoping we see more interest in legal movie downloads, the way MP3 downloads are doing well on iTunes and Amazon.

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Entry was posted on Tuesday, March 11th, 2008 at 6:57 am under Apple.

Read more entries by Erna Mahyuni.
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