Apple have launched iTunes Movie Rentals in the UK, and while the pricing is higher than the US pricing, it isn't too bad, considering the usual $=£ conversion. However, the pricing of Apple TV still leaves a lot to be desired.

For movie rentals, a library title is £2.50 ($4.89) compared to $2.99 in the US. That's for standard definition. High definition library titles and standard definition new release titles are £3.50 ($6.84) compared with $3.99 in the US. For new release HD titles, the UK cost is £4.50 ($8.80), compared with $4.99 in the US.

All those prices are 60-70% higher than US prices. While that's a fairly large premium, it's understandable to some extent, as these are small payment prices, and consumers will tolerate a large price differential, as the odd £1 here or there seems inconsequential.

When Apple TV was launched, it looked quite interesting, though it never looked like a "must have" item. Then it got relauched, with new software, and a price cut was announced to make it more appealing. This brought the price in the US to $229 for the 40GB version, and $329 for the 160GB version. It's hardly throwaway money, but it's cheap enough that you could buy one just to see what it's like.

Unfortunately the price drop never seemed to reach the UK, and here we have pricing of £199 ($389) for the 40GB version, and £269 ($525) for the 160GB version. That's still a 60-70% price premium over US prices! While that sort of premium might be acceptable on small amounts, on a larger expense like the Apple TV, it's something the consumer is far more likely to stop and think twice about.

If Apple wants people to rent movies in the UK from the comfort of their sofa, they should rethink the pricing of Apple TV.

All Prices correct as of 3/6/08 - currency conversion courtesy of Google.