Apple Inc. has announced that it will begin selling movie downloads on the same day that film titles are released on DVD through its iTunes service. Apple has reached agreements with Warner Brothers, Walt Disney Studios, 20th Century Fox, Paramount Pictures, Sony Pictures Entertainment, Lionsgte, Image Entertainment and First Look Studios.

The announcement is a new growth area for Apple, creating interest in Apple’s iPod digital media player as well as Apple’s new Apple TV. It also poses competition for video outlets like Netflix, Blockbuster and Amazon. Film studios previously released new DVDs 30 to 45 days ahead of other distribution outlets to help preserve a major income source. With same-day accessibility Apple has an edge over the video outlets.

The sales of movie downloads also reflects a trend of younger consumers preferring to own a downloaded digital version, rather than purchasing an off-the-shelf boxed copy of the movie from a retail or e-tail store.

Movie titles available this week include "Juno," "American Gangster" and "I Am Legend." New titles will sell for US$14.99 each, with catalog titles available for US$9.99 each.