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FROM VARIETY: Movies to be available to rent

By Dade Hayes and Ben Fritz of Variety -- Video Business, 12/28/2007

DEC. 28 | FROM VARIETY: Apple is set to break new ground with iTunes, offering movie rentals in a bid to rejuvenate that sluggish part of the otherwise boffo service.

Fox and Disney will be announced as partners in a major unveiling by Apple chief Steve Jobs at the annual MacWorld confab on Jan. 14, according to studio sources.

Move has long been expected by Apple watchers (Daily Variety, Sept. 5) and, in some respects, merely catches the company up with video-on-demand offerings from Movielink, CinemaNow, Xbox Live and others. But the imminent prospect of movie rentals on an iPod proved tasty food for thought during the holiday week, with observers immediately handicapping what the move portends for rivals like Blockbuster, Netflix and Amazon.

Apple's two major studio partners could be joined by other distribs, perhaps Paramount, Lionsgate and MGM, which already make library titles available for purchase on iTunes. Rentals are expected to cost between $2 and $5 for a 24-hour period, with the price point ideally motivating consumers in the manner of 99¢ music downloads.

Read the full story at Variety.com.



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