Apple to offer Online Video Rental in a near future
Apple is in advanced talks with Hollywood’s largest movie studios about launching an online film rental service to challenge cable and satellite TV operators.
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. 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.
One studio executive said the service would “compete against cable companies and anyone else offering VOD into the home”. Online services also offer VOD, including Microsoft’s Xbox Live, Movielink and Unbox, a joint venture between Amazon and TiVo.
Sony Pictures Entertainment, 20th Century Fox, Paramount, Metro-Goldwyn-Mayer, Warner Bros and Disney declined to comment…. “When you think about Apple customers they are so connected to the brand they will try anything to do with it,” said one senior studio executive.
A film would cost $2.99 for a 30-day rentalthat could be moved from a computer to at least one other device such as the video iPod or iPhone.
[Via FT]