HBO: Coming to a Hard Drive Near You

iTunes will sell shows and movies, but they may be pricey
By Sam Gale Rosen,  Newser Staff
Posted May 12, 2008 6:51 PM CDT
This photo released by HBO shows Blair Underwood, left, and Gabriel Byrne, right, in a scene from "In Treatment".   (AP Photo/John P. Johnson, HBO, File)
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(Newser) – Apple and HBO are close to an agreement that would let iTunes sell episodes of HBO shows, Portfolio reports. Sources say HBO has cut a good deal—either by breaking iTunes' $1.99 video price ceiling or getting a bigger share of the same rate. But at least one HBO source is still grumbling: "We should have done this a long time ago," the insider said.

The move comes after HBO's parent company, Time Warner, pressured the company to sell its shows online. Expected to start in 2 weeks, the plan would be a boon for both companies: Apple wants to promote its Apple TV service, and HBO has an archive of shows like Larry Sanders and Deadwood that could pull a decent profit online.