Starting April 10, AOL’s UK web site will sell Universal Pictures’ downloads in a combo package with the movie’s DVD. DVD rental firm Lovefilm, which operates AOL’s UK movie service, is partnering with the studio. For about 20 pounds, buyers get a DVD and two digital copies (one desktop, one portable). The caveats: users can’t burn their own DVDs from the digis, amongtal version and it only works with Windows. That rules out use on Apple video iPods and Sony PSPs, among others.
Still, it’s a fairly big step, especially given the conservative nature of most studios when it comes to downloads.  The only other online sell-through service in the UK is Wippit, which offers indies. Universal calls it revolutionary, says BBCi. Truly revolutionary would be making the DVD optional and pricing the downloads based on a margin that doesn’t include hard copy production but this is a big step. It’s a also a coup of sorts for AOL, providing everything goes smoothly.
Screen Digest senior analyst Arash Amel told the BBC “download-to-own is possibly one of the most exciting developments for digital movie downloads over the PC.” He estimates that the UK download market will be worth 200 million pounds by 2010 and that permanent downloads will make up 40 percent of that. But, he says, the ability to burn your own DVDs will have to be part of the mix to make a real difference.

Reuters: The service will launch with “King Kong” as part of an initial library of 35 movies. The digital downloads are available on purchase; the DVD will come in the mail.

Related:

—AOL Launches Movie Download Service in UK

—UK DVD/VD Firm Lovefilm Buys Screenclick For $3.6 Million