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With Apple's WWDC keynote due later today an interesting titbit has already crept out from a very creditable source.

Potentially knocking some of the stuffing out from any official announcement The Financial Times is reporting that Apple has been in advanced talks with Hollywood film studios and is about to launch a iTunes based movie rental service.

Distribution deals have long been in place with both Paramount and Walt Disney but the FT claims other studios have finally conceded that online is the future after initially shunning talks because of the potential impact on DVD sales.

Their softening stance is also likely to have come from Apple's decision to move away from a download-to-own only system to one where users would pay $2.99 for a 30 day rental. Furthermore, the report claims the embedded DRM would enable rental flicks to be transferred from its source computer to at least one other device such as an iPod or the imminent iPhone whilst providing a significant shot in the arm to the company's flagging Apple TV product.

As is always encouraging, when the FT quizzed Sony Pictures Entertainment, 20th Century Fox, Paramount, Metro-Goldwyn-Mayer, Warner Bros, Disney and Apple about these moves they all declined to comment…

Watch this space.

Link:
FT Article

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