Apple Aims for 99-Cent iTunes Show Rentals

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Apple is aiming to “rent” for 99 cents, TV episodes on iTunes, creating a cheaper alternative to its present service, which sells TV episodes at a fee of $1.99 to $2.99 each.

Apple is in negotiations with NBC, CBS, Time Warner, owner of TNT and TBS cable channels and it is close to finalizing deals with ABC and Fox network parent companies, said Bloomberg.

The TV episodes would appear on iTunes within 24 hours of their TV air dates.

Apple is expected to announce the service at an event on September 7, along with a new iPod touch and possibly a new Apple TV set-top box aimed at allowing users to stream content from iTunes.

Apple reportedly hopes the new rentals will provide competition to Netflix and Hulu as “TV” for the iPad and other portables. “This takes Apple out of the position of making consumers decide to either buy or not view. It makes Apple much more competitive with services like Hulu,” analyst Michael Gartenberg of the Altimeter Group told Bloomberg.

Source: Bloomberg
Photo: Apple CEO Steve Jobs

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