Here Come the Hostilities

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Apple (Nasdaq: AAPL) plans to offer movie downloads on iTunes on the same day those films debut on DVD. So much for the old 30-day delay, which gave companies such as Netflix (Nasdaq: NFLX) a little bit of breathing room.

The battle to provide your filmed entertainment rages on. In Netflix's most recent quarter, it became clear that the company will have to spend -- and scramble -- to straighten out its digital capabilities. It's currently forging deals to deliver films over several different set-top devices.

Any Netflix subscriber who's ever faced the Short Wait, or the dreaded Very Long Wait, for a new-release DVD in the queue knows why the online rental service needs to duke it out in digital, especially as swifter options reveal themselves. Netflix's Instant Watch streaming service, which so far mostly involves older titles, won't cut it for long in the widening battleground of digital entertainment.

With studios apparently better embracing the digital format and finally realizing that people want convenience, consumers seem like the most likely winners of this war. Of course, it looks as though they'll eventually lose something, too: DVDs.

News to go
There may have been plenty of good reasons for Microsoft (Nasdaq: MSFT) to just walk away, but instead, there's word Mr. Softy may go hostile and take its bid for Yahoo! (Nasdaq: YHOO) straight to the company's shareholders. Meanwhile, rumor has it that Yahoo! may announce a deal to permanently carry Google ads, following a recent temporary deal between the two companies. At any rate, it looks quite possible that Microsoft will decide the start its siege as early as today.

The "sun" in Sun Microsystems (Nasdaq: JAVA) seems like a bit of an oxymoron today, because the company delivered a flash flood of bad news last night. Its surprise consisted of a $34 million loss and plans to cut between 1,500 and 2,500 workers. Guess what: It's the economy, stupid.

Wall Street rallied yesterday, as many market participants apparently just decided to ignore any hint of bad economic news. There's good reason to believe that the April unemployment data, scheduled for release later this morning, may bring back souring sentiment -- but who knows? Continuing news like Sun delivered -- complete with layoffs -- certainly doesn't make this Fool feel upbeat about the economy.

Let's give peace a chance: News agencies say Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) is expecting record numbers at this weekend's annual shareholder meeting, also dubbed "Woodstock for Capitalists." I doubt there will be much in the way of hippies, hallucinogenic drugs, or Jimi Hendrix riffs, but I'll bet those who attend will emerge feeling pretty groovy.

If you're not among the many making the pilgrimage this year, fear not, dear Fool. Our own Bill Mann and Seth Jayson are attending, and they'll be sending updates for your reading pleasure. Find out more, or simply enter your email at the bottom of this page.

Thanks for joining me again for today's early-morning news. I'll be here at the same time Monday, and I hope you can make it, too. Have a great and Foolish day and weekend!