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Reports: Apple to add Netflix service, 99-cent Fox and ABC TV show rentals to next-gen $99 Apple TV

Apple Online Store“Apple Inc., preparing to announce a new set-top box that delivers video to consumers’ TVs, will include programming from Netflix Inc., according to three people with knowledge of the plans,” Ronald Grover and Peter Burrows report for Bloomberg.

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“The streaming service would be available on the revamped version of Apple TV, due to be introduced tomorrow in San Francisco, said two of the people, who asked not to be identified because the plans haven’t been made public,” Grover and Burrows report. “Users would pay a subscription fee to Netflix for the service, the people said.”

Grover and Burrows report, “The Cupertino, California-based company is due to release a $99 version of Apple TV, $130 less than the current model, people familiar with the plans said last week.”

Full article here.

Shira Ovide reports for The Wall Street Journal, “As part of the Apple event Wednesday, News Corp.’s Fox and Walt Disney’s ABC networks are slated to be announced as offering 99-cent rentals of television shows through the iTunes store, according to people familiar with the matter.”

“Now, people who buy TV shows through iTunes to watch on computers, iPhones or other gadgets typically pay $1.99 or $2.99 for each episode,” Ovide reports. “Cutting the cost could significantly increase what so far have been relatively light sales of digital TV shows through iTunes.”

Ovide reports, “More revenue, of course, always is welcome, but media companies are wary of damaging their business relationships with cable- and satellite-TV companies, which pay billions of dollars a year to license TV channels and beam them into U.S. homes. That’s why several TV companies, including NBC Universal, Time Warner and CBS, for now remain reluctant to side with Apple’s proposal to lower the cost of iTunes TV shows.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

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