Apple Hints at Future iTunes Movie Rentals

NEW YORK, September 12:
Apple is said to be in discussions with major Hollywood studios about adding a
30-day movie rental service to its iTunes Store.

According to the Financial
Times, Apple is working towards
launching the new service sometime this fall. It would offer a 30-day rental
for $2.99. The deal would allow iPod users to watch movies during the rental
period without purchasing the entire film. Rights management software would
allow the movies to be viewed on an iPod or iPhone, but would prevent them from
being copied. Apple already sells films online, including titles by Walt Disney
and Paramount. But the number of films available on iTunes is still limited.

The new iTunes rentals
could mount a serious challenge to cable and satellite TV providers who are
working on offering a large library of on-demand films from the major studios.
Video on demand has been lucrative so far for cable companies like Comcast and
satellite operators like DIRECTV.