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Wednesday, December 26, 2007 10:47 PM PT Posted by Harry McCracken

Apple and Fox: Rentals and DVD-to-iPod Transfers On Their Way?

Like almost every Apple news that hasn't actually happened yet, it's rumor, not established fact. But the Financial Times is reporting that Apple has struck a deal with Fox that will result in new Fox movies being available for rent through the iTunes Store, and their DVD versions including FairPlay copy protection in a manner that lets you legally move a movie from disc to PC and iPod. The first aspect of the deal, at least, will supposedly be announced at Macworld Expo next month.

If this all comes true, it's major news on multiple fronts--the first time that Apple has done rentals (rather than flat-out sale of digital content); the first time that a studio other than Disney has put new releases on iTunes; and the first time you could easily move a DVD movie to iPod without anyone telling you you were breaking the law.

Digital movie rentals have, of course, been around for eons via sites like Movielink and CinemaNow, without ever truly catching on. But if Apple were to go from dissing the rental model to embracing it, it would have the advantage of the massively-deployed, mature distribution platform that's made up of iTunes, the iPod, the iPhone, and Apple TV. And if any company can make digital rentals more appealing than they've been until now, it's probably Apple, which might be more aggressive on price and less so on copy protection than other companies have been.

Still, a deal that was limited to Fox titles wouldn't make much sense; who wants to have to figure out which studio released a movie in order to tell whether it's available or not? You gotta think that Steve Jobs, who's both a Disney board member and massive shareholder, will be able to get the Mouse House to be a charter member of any iTunes rental and/or DVD-to-iPod program, too. But you'd want Warner Bros. and Paramount and Columbia and Universal (the last of which apparently wants to go its own way rather than pal around with Apple) to join in, too.

More details when we have 'em--which may not be until Steve Jobs himself tells the world what's going on, at Macworld Expo or elsewhere...

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