After months of looking to
re-energize its iTunes business, Apple Inc. is nearing a "rental" deal for TV shows with the Walt Disney Co., according to reports.
For its iTunes service, Apple has been looking at offering
99-cent rentals of television episodes -- which is lower than the $1.99 fee currently paid by consumers to purchase individual episodes.
The effort would give more energy to Apple's slowing
iTunes business, and would compete with free, ad-supported TV episodes and other growing video content on the Web.
Per reports, the agreements would give viewers a 48-hour window to view an
electronic version of the show before the new television season starts in September. It could also help boost Apple's flagging Apple TV, the company's service/device that allows Internet video to be
seen on traditional television sets.
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The current Apple TV service is a downloading video business for the purchasing of movie and television content. The new rental addition would be
"streaming" video -- allowing for less use of server storage.
Many media companies, including CBS Corp., General Electric Co.'s NBC Universal, News Corp., and Viacom Inc., are reportedly
resisting Apple's plans -- given that the exclusive TV window would usurp their exclusive traditional broadcast and cable windows. Apple's argument, according to executives, could be that it will act
as another marketing tool for TV networks.
A Wall Street Journal story says the new Apple service -- which might include a new device connected to television sets -- will start up next
month.