Talking television
Apple is rumoured to be in the final stages of securing a deal with News Corp and other media powerhouses that will allow iTunes users to rent popular TV shows for just 99 cents.
Anonymous sources in on the plan told Bloomberg that telly addicts will be able to rent shows from News Corp's Fox for 48 hours for the estimated cost of 99 cents. They also reportedly said Universal, CBS, NBC and Disney are thought to be signing up.
However, in slightly conflicting reports, the News Corp-owned Wall Street Journal said while the deal with Walt Disney's ABC is almost in the bag, Apple's proposal is meeting resistance from CBS, NBC, Viacom and News Corp itself.
TV episodes will reportedly be made available within 24 hours of going on air and will be free of commercials unlike most on-demand services. Jobs is thought to be planning on unveiling the proposition at Apple's September event, which is also a fortnight before the start of the main prime TV season.
So far media firms have worried making content available online could put viewers off paying a monthly subscription fee, most companies' key source of profits. Apple is reportedly trying to persuade the media behemoths they could make more money through iTunes if they dropped the price of rentals and sell more. Most TV shows currently cost $1.99 to download from the store, which Apple reportedly thinks is too pricey.
Although ‘significant hurdles remain' before closing the deal, WSJ sources reportedly said Fox is receptive to the idea of 99c TV show rentals, while CBS is not predicted to agree to the deal. NBC and Viacom, which owns MTV are also thought to have no intention of signing up.
Bloomberg reported that Fox and ABC are reportedly closer to closing a deal with Apple, while CBS and NBC may just miss out on announcing a possible partnership in time for Apple's September event.
If signed, the deals would likely add to the appeal of Apple's media-friendly devices and also consolidate iTunes' role as the largest music retailer, helping Apple see off strong rivals such as Amazon, Hulu and Netflix.
The September conference traditionally brings with it refreshes of Apple's products and this year many people expect the launch of the latest iPod Touch and a new version of Apple TV...or iTV. The new TV set top box is believed to cost $99 with a smaller hard drive than its predecessor, but let users stream content straight from iTunes, which could fit in very nicely with the latest 99 cent TV rental plans.
Apple seems to have refocused its video-centric efforts and now the emphasis appears to be on using video content to make its hardware more saleable, rather than trying to conquer the living room with its TV offering. Its move to rentals also allows Apple TV users to stream video to their sets instead downloading and storing programmes.
