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Apple and Fox ink deal for iTunes movie rentals

Written by Rich Fiscus (Google+) @ 27 Dec 2007 14:49 User comments (5)

Apple and Fox ink deal for iTunes movie rentals 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

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5 user comments

127.12.2007 15:40
duckNrun
Inactive

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
This message has been edited since its posting. Latest edit was made on 28 Dec 2007 @ 8:40

228.12.2007 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.

328.12.2007 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

428.12.2007 13:01
ali2007
Inactive

i am back sorry afterdawn for the b*n i am back better than ever

i don't trust apple

529.12.2007 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.

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