06/10/2007, 7:15pm, EDT
Sunday, June 10thApple's video rental service coming this fall
Apple is in the later stages of negotiating an online rental service for feature-length movies on iTunes, according to at least one senior Hollywood executive. The service, which is currently slated for a fall release, would reportedly use a version of Apple's FairPlay copy protection to let customers rent movies for a full 30 days at $2.99 per title, automatically rendering the video file inert and preventing unauthorized copies while still allowing the file's transfer to at least one extra device, such as an iPhone.
The move is said to be a critical one for Apple. The electronics firm's roster of studios has grown significantly since the addition of full-length movies to its online store in fall 2006, but some studios are allegedly reluctant to sign on to the complete purchase model for fear of hurting their DVD sales. However, one of the commenting executives observed that the ramifications could be dramatic for rivals already offering online rentals, since Apple has previously turned down the business model.
It could "compete against cable companies and anyone else offering VOD into the home," the executive said.
Digital rentals have so far enjoyed modest success, with Microsoft's Xbox Live Video Marketplace and Amazon's Unbox highlighting the current options. None currently owns a majority stake.
Film industry executives, however, claimed that Apple could see major gains through rentals courtesy of its Apple TV media hub. The device, which is reportedly suffering from low sales in its current form, could be used to at least synchronize rented movies from home computers but could also be used to download the movies directly. This could permanently change the way users experience the device and give it "a lot more utility," said one company leader.
IBB Consulting expert Jonathan Weitz agrees, noting that Apple would latch on to a model for watching video which is currently more popular than direct purchases and is poised to grow larger still as digital rentals take off.
"Consumers don’t want to own media – they want to consume it," says Weitz.
,
, 10
,
,
,
,
, 
subscribe to comments
for this article
I pay fifteen bucks a month through Blockbuster Online, and I have more movies then I know what to do with.
Subscription models don't make sense for most consumers.
Also, do you think they'll let you buy the movie if you like it? It would kind of fit in with their buy-a-single, buy-rest-of-album-at-album-price-discount model. I could see that being a big money-maker (not the kind James Brown would think of) for iTMS and the studios.
Thoughts? Feelings?
I would be interested in it because I don't want to BUY movies, I just want to WATCH them. Now, if Apple gets movies in HD sometime in the next year or two, say goodbye to the HD-DVD/Blu-ray wars. AppleTV will rule the WORLD!!
I wonder if there's a cost-comparison out there for something like this...
I want to OWN my music. I listen to my music EVERY day. I listen to it everywhere. I listen to some favourite songs many, many times.
I don't want to OWN my movies. It is waste of money and shelf space because:
1. I don't watch my favourite movies every day (that would be freaky) 2. I don't watch my movies everywhere; 3. Even the most favourite of my favourite movies, I can only see about 10 times in my life before it becomes old, boring and uninteresting (with perhaps one or two exceptions, at most).
There are, of course, people who love building collections of things. Some of these people build collections of movies. Not because they need to watch them every day; just because they love to have a collection of things (much like a thimble collection, or a teaspoon collection, or a collection of baseball cards - not much useful, but a collection, nonetheless). That is different. Most of us who don't build collections of movies (or anything else, for that matter). We only buy things that we will be using frequently. Movies just ain't those things. If you have small children, you probably will end up buying some Disney, since that stuff will be used frequently; eventually, it will go into a box and in the attic (or basement).
$3 for a movie rental is cheaper than Blockbuster. Keeping it for a month is plenty of time to see the movie. This is an excellent price for an excellent period. If bandwidth allows, HD downloads would sell like hotcakes and AppleTV would be in a position to become the new iPod for Apple (read: cash cow).