Apple Seeks to Rent Movies on iTunes

According to reports from the Financial Times yesterday, Apple, Inc. is in talks with a variety of Hollywood studios to rent newly released films for $2.99 each. The films would then expire after a certain number of days. Studios seem to be worried by Apple's plan to allow videos to play on iPods, fearing a cut into DVD profits.

According to the Wall Street Journal this morning, Viacom Inc's Paramount Pictures seems to be interested though GE's Universal Stuido's is opposed.

Older films are currently available for purchase from Lions Gate Entertainment and MGM (about $9.99 each) but only Walt Disney Studios provide new films via the iTunes store. However, Disney's involvement may have more to do with Apple CEO, Steve Job's seat on their board than true good business sense.

If the deals are made iTunes would not be the first store to allow for online video rental, but with Apple's dominance in the paid online video content sector it would be a dramatic shift.