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The difference is that with mp4 you need to drag it into itunes after the movie is downloaded and m4v will automatically be added into itunes.
We started using the m4v because we had members who couldn't figure out why the movies weren't showing up in itunes. The reason was that the movies were still sitting in their download folder and they didn't know they had to manually add them to itunes.
I'm not signed up with Hunkmoney at this time so I don't know what the link code looks like. What does the hosted urls look like with a person's affiliate code?
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