With iTunes as the internet portal to beat in terms of music and TV downloads, it seems the site is now turning it's attention to feature films.

In a story from Variety, Apple is currently talking to some "major studios" about making their films available via iTunes. The feeling is that this will happen by the end of the year, the only problem is the price.

Steve Jobs, Apple's CEO, wants to sell all films for $9.99 which is a price the studios are balking at. The company is offering the studios a 70% wholesale rate, which is the same rate they give to television and music companies.

Another fear is if the studios give Apple more favorable retail terms they risk upsetting retail outlets like Wal-Mart and Best Buy.

Apple is also being very tight-lipped about future iPods that would have a bigger screen that might be "more appropriate for films."