Apple to Introduce Cloud Service for Movies

NEW YORK -  Apple is working on a cloud service for movies that is set to launch late this year or in 2012, the LA Times reported.

Apple has been meeting with studio executives and is looking to finalize agreements that would allow consumers to  buy films via Apple's iTunes and access them on any Apple device via its iCloud online locker, it said.

The news comes after Tuesday's launch of the UltraViolet cloud service, for which Wall Street has a mixed outlook, with the home entertainment release of Warner Bros.' Horrible Bosses.

Since Apple is not currently part of the consortium of studios, electronics makers and online distributors that launched UltraViolet, the company is considering allowing consumers who buy UltraViolet-enabled film to watch them more easily on Apple devices via apps, the Times said. BTIG analyst Richard Greenfield has said Apple's lack of participation is a key hurdle for UltraViolet's success.

Importantly though, movies bought on iTunes would continue to only work on Apple devices as Apple wants to keep encouraging consumers to buy its devices, the Times highlighted.

A spokesman for Apple declined comment, the paper said.

Email: Georg.Szalai@thr.com

Twitter: @georgszalai