Apple to Introduce Digital Rentals?

December 27, 2007 | by Nick Mokey

A deal between Fox and Apple could soon bring downloadable movie rentals to iTunes.

While Apple already offers DRM-protected movie downloads through its iTunes distribution network, a new deal the company has supposedly cut will soon see the introduction of digital movie rentals as well. According to the Wall Street Journal, Twentieth Century Fox and Apple will soon announce an agreement that allows Fox movies to hit iTunes for rental.

The move will put Apple in direct competition with existing companies that offer downloadable rentals, such as Movielink. The company will also compete with traditional brick-and-mortar stores like Blockbuster and rent-by-mail services like Netflix.

Since neither company has officially announced the deal, specifics such as prices, rental periods and video quality are not yet known. Currently, iTunes movie downloads cost roughly the same as physical DVD copies: $9.99 to $14.99.

The same source also reports that Apple will lend its FairPlay digital rights management technology to Fox for use on DVD releases. This would facilitate legal ripping of movies for use on personal media players like the iPod.

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