There are rumors started by Financial Times that Apple and News Corpâ€™s 20th Century Fox have reached an agreement to develop a unique online video-on-demand service promising to alter the conventional way of paying online film content.
Under the alleged agreement, online viewers can download Foxâ€™s latest DVD releases via iTunes but for a limited time only. Apple is also rumored talking with other major studios such as Sony, Warner Brothers, and Paramount Pictures for this same distribution agreement. With the alleged rental price set at $2.99, this is significantly lower than the regular price ranging from $10 to $15 for owning a video.
While both parties opted to keep mum on this deal, I bet the major online movie rental companies such as Blockbuster and Netflix are now trembling with fear and cracking their brains in crafting strategies to preempt the imminent assault of Apple.