Apple Inc. is partnering with entertainment giant 20th Century Fox to offer movie rentals through the popular iTunes program, according to a news report.
Through the proposed online video-on-demand service, consumers will have the chance to download time-limited copies of Fox DVD releases, according to a source familiar with the deal cited in the Financial Times Thursday.
The deal is expected to be announced at the Macworld show in San Francisco on Jan. 14.
The news follows a similar move by Microsoft Corp. in 2006 in partnership with Xbox 360. Together, they launched a digital video download service that allows Xbox 360 owners to buy television shows and rent movies.
The service, which was made available to Canadians just this month, lets people with broadband internet connections purchase standard and high-definition content through the Marketplace store on its dedicated Xbox Live network.
However, analysts say the sheer strength of iTunes' popularity will make the partnership between Apple and Fox highly lucrative for the two companies, including a boost in sales of video iPods.
"Fox and potentially other studios are coming around to the idea that there is nobody out there to challenge iTunes," Jonathan Weitz, a principal with IBB consulting in the United States, told the Times.
"This deal is a sign that media mobility is coming to the mainstream."
Apple shares hit the $200 mark for the first time Wednesday — largely on the strength of the iPod brand. The company unveiled a new line of personal media devices this year, updating its flash-based Nano model to enable video playback as well as introducing the iPod Touch.
The touch-screen unit includes Wi-Fi wireless capability that allows users to connect to the internet, as well as Apple's online music store iTunes and purchase songs.
According to the Times, new Fox DVD releases will include Apple's FairPlay digital rights management system, allowing the films to be legally copied from the disc onto a computer or iPod.
Limited Disney, Paramount and other films are already for sale — although not for rent — through the iTunes platform.
Apple was also said to have been in negotiations with Sony, Paramount and Warner Brothers about similar deals to make their content available through the iTunes store.
Related
More Consumer Headlines »
- Appeal Court rejects iPod levy
- The Federal Court of Appeal has rejected a controversial levy that would have raised the price of MP3 players, cell phones and computers by as much as $75.
- Plane 'tipped madly,' passengers of rocky flight say
- The Transportation Safety Board and Air Canada are investigating after passengers were injured when a plane suddenly rolled side-to-side and dropped mid-flight on Thursday.
- Retailers report mixed holiday season
- Sports retailers West 49 Inc. on Friday reported weaker holiday sale in what has been a mixed season for retailers.
- No spilling the beans on secret Santa
- If you know who gave a coffee shop manager in Port Hawkesbury a free car for Christmas, don't tell her.
- Ruling lets severely disabled off hook for cost of extra seats
- Canadian airlines have a year to stop charging those with severe disabilities for extra seats they need after a landmark decision by the Canadian Transportation Agency on Thursday.
Consumer Life Features
Blog Watch
Most Blogged about CBC.ca Articles
Note: CBC does not endorse and is not responsible for the content of external sites - link will open in new window
