“Apple Inc., maker of the top-selling iPod media player, will let iTunes users rent movies as well as buy them and will add Warner Bros. and Fox as suppliers, according to people familiar with the agreements,” Andy Fixmer and Connie Guglielmo report for Bloomberg.
“Joining Warner Bros. and News Corp.’s Fox in supplying rental films are Viacom Inc.’s Paramount, Walt Disney Co. and Lions Gate Entertainment Corp., said two people who asked not to be identified because the plans aren’t public,” Fixmer and Guglielmo report.
“Apple will announce the rental service Jan. 15, the people said. New releases and older titles will rent for $3.99 for 24 hours. The lower-priced rentals and additional titles may help boost the popularity of Apple’s iPod media players, iPhone and Apple TV set-top box, which delivers shows to widescreen TV sets,” Fixmer and Guglielmo report. “‘Once a couple of studios do it, how long can the others resist?’ Richard Greenfield, a Pali Capital analyst, said in an interview. ‘It becomes only a matter of minutes before the others come on board too.'”
“Jobs may also use his [Jan. 15th Macworld Expo keynote] speech to announce an update to Apple TV, which transmits content from a Mac or PC for viewing on widescreen TVs, Bear Stearns & Co. analyst Andrew Neff said in an interview,” Fixmer and Guglielmo report.
Full article here.