RSSFT: Fox, Apple sign movie rental deal
By Ed Oswald | Published December 27, 2007, 11:47 AM
In a breakthrough agreement, another major movie studio will add its feature films to the iTunes lineup, but this time under unusual and potentially groundbreaking terms.
According to the Financial Times, sources are indicating that in order to secure 20th Century-Fox's wide range of feature films for Apple's iTunes service, the Cupertino company has apparently agreed to a rental model.
As the report indicated, users will be able to download the movies, and will then be given a set time to view them before they expire. The announcement is expected during the Macworld conference in January.
So far, Apple has only been able to convince Walt Disney and its associated studios to sell their new movies through iTunes. Other studios have been less cooperative, many taking issue with the company's insistence -- until now -- of purchase-only downloads and its pricing structure.
Paramount, MGM, and Lionsgate also sell movies on iTunes, however these only include their older releases.
DRM will still be the name of the game, as Apple's FairPlay will protect Fox's content. However, it is unclear whether the company would need to change the technology to allow it to support rentals, or if Apple had already been prepared for this eventuality.
Also for the first time, FairPlay would make its appearance outside of an Apple product, being included with a digital file on movie discs that users would be able to rip for mobile viewing on the iPod and iPhone.
News of this latest move by Apple excited investors, briefly pushing the stock above $200 Wednesday. In midday Thursday trading, the stock again was up 1.4%, trading at about $202.
Looks like Steve Jobs is ready to accept a subscription-like download model after all.
Zzzzzzz.. Boring. I remember when Apple used to innovate. Now they're releasing a service that, let's say, has been around quite a while. The only thing they can do with this that might make it attractive is 99 cent rentals. They'd also better have a better selection than on-demand systems (Cox, Comcast, etc), Net Flix, and the video rental store. If they can pull that off, it might stem the rising tide of movie piracy.
Oh, and what's with this?
"...with a digital file on movie discs that users would be able to rip for mobile viewing on the iPod and iPhone"
Since when can you insert a "disk" into an iPod? Am I missing something?
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|Steve Jobs is just brilliant! Movie-subscription! Why not?! Apple, if they play their cards right, have a chance in the upcoming year to take a major gain on Microsoft in the home computer department. Let's face it, Vista is not going anywhere; the bugger is a resource pig, reviews and benchmarks are not so good and consumers are scared and sticking to Windows XP. This year I have seen more people turn to Mac than ever before.
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|Morsel - how does your comments about Vista have anything to do with rental movies? Don't get me started with the buggy (but not resource hog) OS 10.5. Even then, Times are moving on, Yes Vista really likes 2 Gigs of RAM. So - my mom has 2 Gig on her keychain.
As for the movies - It's a great idea - this wouldn't be for daily use as a big screen is nicer but if I'm traveling (or had a long commute on a train) it's pretty cool to have the option. The question will be on price though. If it's 4.50 to rent a movie at blockbuster - well...I can only hope they get it into the 1.99 range - I might rent more movies.
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|I was just stating that, strategically, Apple are possibly in a better position than ever before to take on a lead as a company IN GENERAL, that's all.
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|I do agree Apple is kicking some major but on the iPods and iPhones. Their OS is beautiful. Seriously though, the only way they can convert large amounts of people is unlock it (so it works on any intel platform) and then give a copy in every PC magazine. If it came free with a PC World magazine - It would convert a lot of people. The other problem is games - however you look at it, any system can do Internet browsing, email, photo editing. But MS has directx. Anyway, I do agree Apple is moving up - good thing as it keeps Microsoft on it's toes.
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|[Deleted] - sorry
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|It just gets better and better with Apple. Apple is always on the cutting edge of technology and everything that is cool. Steve Jobs for President of the United States, he's got my vote. (^__^)
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|is it true that he's never done anything wrong ever and that his turds smell of roses?
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|Yeah.
When they start making movies priced comparably to mp3's and what-not, and then start putting them DRM free so I can do what I please, I refuse to buy them.
I half considered starting to get music vids from iTunes, but as of this point it's not worth it. I don't have an iPod, so I can only view them on my computer? No thanks.
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|You can buy DRM-free music through iTunes for $1.29 USD per track.
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|Why is it that I need to rent inferiorly encoded movies from Apple for viewing on a small iPod screen instead of renting the DVD from Netflix or Blockbuster to view on my wide screen TV again?
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|It's for those people who have no foresight into what they want to watch. Plus you have no idea if they are going to up the resolution on the movies come MacWorld in January.
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|i dunno, maybe you could watch it on your wide-screen TV via Apple TV?
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|Thats the problem with Apple renting movies pitdingo2, they'll still make money off of it because you and others like you really "dunno".
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|Please enlighten me as to what i "dunno". Apple is providing a product. They make money because people want what they are providing.
All the haters, like yourself, are just pissy about Apple dominating the MP3 player and Smart Phone markets.
The living room is going to be a heck of a battle. Apple, M$, Sony, Toshiba, Cable, Satellite, Tivo, and some others all competing for $$$.
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|Meanwhile, I can just rip a few movies to my Zune 80 and rent movies from the xbox marketplace .... this is not big news.
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|Viva La Zune 80!!!
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