Apple is allegedly in talks with some of Hollywood's largest movie studios to create a video rental service on iTunes. The Financial Times reports:
Apple already sells films that can be downloaded and owned, and has distribution deals with Walt Disney and Paramount. Other studios have shied from tie-ups with Apple because of concerns that digital downloading may hit DVD sales.
But studios will be more enthusiastic about joining its video-on-demand service. Films downloaded to rent are unlikely to affect DVD sales.
Apple, which declined to comment, is believed to be aiming for an autumn release.
A film would cost $2.99 for a 30-day rental. Its digital rights-management software would allow films to be moved from a computer to at least one other device such as the video iPod or iPhone. The software would prevent movies being copied.
One studio executive said the service would “compete against cable companies and anyone else offering VOD into the home”.