Apple is engaging in “advanced talks” with two major Hollywood movie studios about a new online film rental service to launch this fall, the Financial Times reported earlier this week.
Walt Disney Studios and Paramount Pictures, two of Hollywood’s largest studios, would make content available from their large film libraries for online rental purposes, at a cost of $2.99 for a month-long rental. The content could then be moved to such mobile Apple products as video iPods or the new iPhone, but would be encrypted with anti-pirating software. This service would compete with cable and satellite video-on-demand services.
Meanwhile, Reuters reported Tuesday that several top Hollywood executives, all of whom declined to be named, had expressed skepticism about the potential deal, questioned Apple’s commitment to fighting piracy, and feared that such a move would hurt present industry revenue streams.