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Apple and Fox ink deal for iTunes movie rentals

27 December 2007 14:49 by Rich "vurbal" Fiscus | 5 comments

Twentieth Century Fox and Apple announced a deal that will add movie rentals to the iTunes online store. Currently Walt Disney, Paramount, MGM, and Lionsgate, although new releases are only available from Disney. Fox will be the first company to offer rentals through iTunes.

Although the internet has long been touted as a replacement for DVDs, or at least an additional revenue stream, so far no service, including iTunes, has emerged that makes enough money for Hollywood to consider it an unqualified success. Earlier this year NBC Universal severed their relationship with iTunes over just that issue.

Some on Wall Street are apparently seeing the deal as a threat to more conventional DVD rental operations like Blockbuster and Netflix, causing shares of both companies to decline by more than 4%. But not everyone is convinced that this puts iTunes into competition with those services.

According to Wedbush Morgan analyst Michael Pachter its an attempt to expand the market to include more consumers. "I don't think that will cannibalize rental for the purpose of viewing at home," Pachter said. "I think that the primary purpose of renting movies is to consume the entertainment in the home. The primary purpose of downloading anything from iTunes stores is to consume on the go."

An additional provision of the deal will use Apple's DRM to allow consumers to make copies of Fox DVDs to play on mobile media players.

Source: Reuters

Permalink to this article

Netflix CFO says the DVD rental business isn't disappearing any time soon (6 February 2008)

Netflix profit to be used to buy back stock (2 February 2008)

MGM brings HD channel to Verizon FiOS (24 January 2008)

NBC gives away almost 10,000 tv episodes at CES (19 January 2008)

New guide for installing WMP 11 on Windows MCE 2004 (16 January 2008)

Netflix Watch Instantly no longer works with older Windows MCE versions (14 January 2008)

Netflix expands Internet viewing option (13 January 2008)

Fox to include iPod compatible digital copies with DVD releases? (9 January 2008)

UK IP Minister thinks CD ripping should be legal (8 January 2008)

Sony BMG drops DRM in digital downloads (7 January 2008)

DRM is dead (4 January 2008)

Apple sued for DRM practices (4 January 2008)

Netflix pairs with LG to make set-top box (3 January 2008)

iTunes to add more studios to video rental service? (30 December 2007)

Amazon reports strong sales of HD DVD and Blu-ray standalones (27 December 2007)

Study predicts massive growth in online video over next 4 years (17 December 2007)

Hulu to go public some time next year (16 December 2007)

Samsung gives away CinemaNow downloads with media players (15 December 2007)

iPhone and iPod Touch get free remote PC access (14 December 2007)

NBC Universal content now available on SanDisk's "Fanfare" (12 December 2007)

NBC TV shows disappear from iTunes as contract expires (4 December 2007)

Fox movies may be appearing on iTunes next year (3 December 2007)

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Discuss this article!
duckNrun (Inactive) 27 December 2007 15:40
*Quote:* An additional provision of the deal will use Apple's DRM to allow consumers to make copies of Fox DVDs to play on mobile media players. Shouldn't that read: Apple's DRM will allow consumers to make additional copies...to play on Apple mobile media players? fixed for error in tag syntax [ + quote] This message has been edited since posting. Last time this message was edited on 28 December 2007 8:40
7thsinger (AfterDawn Addict) 28 December 2007 8:25
Yeah exactly. Apple media players. I'm not sure this would be realy comptetion for BB or Netflix. I don't see a family sitting around, cuddling up next to each other to watch a movie on an ipod. [ + quote]
Moomoo2 (Member) 28 December 2007 12:46
Remember with iTV you could um, watch it on your TV... I can just imagine that people will crack the DRM and be getting cheaper movies off iTunes [ + quote]
ali2007 (Inactive) 28 December 2007 13:01
i am back sorry afterdawn for the b*n i am back better than ever i don't trust apple [ + quote]
borhan9 (AfterDawn Addict) 29 December 2007 18:16
Rental with itunes i dont know i would rather buy without drm and be in control of what i do with the thing i purchase. [ + quote]