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Apple In Talks With Hollywood For Movie Rentals
Mark Ramshaw
0 comments 11 June 2007
Apple is in talks with some of the largest movie studios in Hollywood, in anticipation of the launch of a new online film rental service.
Although companies such as Walt Disney and Paramount have already made their movies available for sale via the iTunes service, other studios – including 20th Century Fox, Warner Brothers and MGM - have been less eager to sign with Apple for fear of harming DVD sales. Rental via a Video On Demand service is perceived as something that will not affect DVD revenue, however. Apple’s service would instead compete directly against rival VOD offerings such as Microsoft’s Xbox Live service and Unbox, a joint venture between Amazon and TiVo.
The new service, which is schedule to launch this Autumn, is expected to give customers 30 days rental of each movie for a $2.99 fee. Apple’s digital rights management software would ensure that the movie could be transferred to various players, including the iPhone and iPod during that period, yet would be impossible to copy or view after the rental period had ended.
For more on this story go here.
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