Variety reported that iTunes may offer film downloads by the end of 2006, although the price has yet to be determined. Apple’s chief executive Steve Jobs wants a flat-price of $9.99, in line with the 99 cents price on all iTunes songs, new and old releases alike.

However, studio executives are allegedly resisting Jobs’ $9.99 plan, demanding a price range that mirrors retail-store DVD pricing where the newest releases straight out of cinemas cost nearly twice as much as older titles.

Apple declined to comment on the report.