Apparently, while both sides are interested, neither can agree on pricing. Apple wants to sell flicks for a flat fee of $9.99 while Hollywood, which already has experience selling its wares online, wants something comparable to current DVD prices and the option to price according to popularity, reported Tinsel Town trade mag Variety.

However, Variety also said Apple might give in to Hollywood and offer a range of prices from $9.99 to $19.99.

Unlike its dealings with the music industry, Apple might not hold all the cards when it comes to finalizing a deal with Hollywood. When the topic is music, Apple can pretty much call the shots because the computer company’s iTunes Music Store has more than 80 percent of the music download business.

Movies, however, are another story. Hollywood already sells downloadable movies via sites like Movielink and CinemaNow. If the movie industry doesn’t like Apple’s offer, they can take their business elsewhere.

But studio execs can’t ignore iTunes’ market penetration. While maybe not everyone is familiar with Movielink or CinemaNow, iTunes is almost synonymous with music and video downloading. Some kind of movie/iTunes/iPod collaboration could definitely boost Hollywood’s post-theater income.

Yet Another Microsoft Rumor

There are more rumblings that Microsoft may still want its own player/music store combination.

Even though Microsoft recently partnered with MTV to create the new online music store called URGE, the Redmond software behemoth is supposedly about to launch its own service, according to the New York Post, which reported that Microsoft has “quietly restarted licensing talks” with major labels.

According to the article, Microsoft has developed a new music/video player that some say exceeds the current video quality of the iPod. But a quoted source described a head-to-head competition between Microsoft and Apple as being like “Xbox versus PlayStation.”

The same article points out that Microsoft has not even confirmed the existence of the player yet. Rumors of a Microsoft-manufactured, iPod-like player costing less than the iPod have been circulating for the last couple of years. Whether the company can beat Apple at its own game is questionable. But if Microsoft can undercut Apple’s price, it just might be able to succeed where others have failed.

The Rock And The Roll

While the iPod accessory market is almost an industry unto itself, there’s a new item available that was probably never envisioned by the folks at Apple.

It’s called the iCarta and it’s a combination mount, battery charger and toilet paper dispenser.

That’s right. With iCarta you can answer nature’s call while rocking with your ‘pod, which, thanks to the iCarta’s AC adapter, is charging as you’re, uh, discharging.Manufactured by Atech Flash Technology, the iCarta also features four integrated high-performance, moisture-free speakers and an easily removable wall mount. Price is $99.95. iPod and toilet paper not included.