Apple and News Corp's 20th Century Fox have gon in together on a new video on demand deal allowing users to rent digital copies of Fox DVD new releases with the Apple iTunes platform, according to rumors being reported in the Financial Times.
This comes as welcome news to fans of Apple's iTunes, as the future had begun to wane after the contract battle with NBC ending in their exodus from the platform. Following their departure, Disney's studio was the only Hollywood outfit making available their new releases on iTunes. Paramount, MGM and Lionsgate also sold titles, but not new releases.
As MG Seigler said today, this is huge. Assuming that Sony, Paramount and Warner Brothers follow suit, as they are also rumored to do, many folks may quit Blockbuster and Netflix subscriptions for the economy and convenience of an AppleTV unit, especially if rentals are $2.99 for 30 days.
The move returns to the fore the potential usefulness of the AppleTV, as the iTunes platform could be used for not just purchasing, but rental, with the Apple FairPlay digital rights management system. Apple, in effect and by force of will (again), is creating a distribution system that makes their products the preferred way to enjoy digital entertainment.