Apple and Fox to Rent Movies Through iTunes

The Financial Times is reporting that Apple has signed News Corp's 20th Century Fox studio to a new online video-on-demand service in a deal that could "change the way people pay for online film content."

The video-on-demand service may be launched at the Macworld Expo, which kicks off on January 15th. The service will allow consumers to rent the latest Fox DVD releases by downloading a copy from iTunes for a limited time.

Fox also plans to include a digital file protected by FairPlay in physical DVD releases. You will be able to transfer this file from the DVD release disc to your iPod video or iPhone. The launch of iPod-ready films on DVD would "help Apple sell a load more video iPods", said one studio executive.


This deal will mark the first time Apple will extend its FairPlay digital rights management system beyond its own products.

At this point in time no mention has been made of a price or time limit on the DVD rentals. Neither is any information known as to the resolution of the movies to be made available. In the past, rumors have pegged the cost of a rental to $2.99 for 30 days.