• The Wall Street Journal (subscription required), Monday, June 11, 2007 11 AM

Apple--which now sells TV shows and older movies from several entertainment companies on iTunes--is trying to convince two major studios to make new movies available for rental on its online service. Apple is pitching the rental service aggressively, according to two studio executives, with titles to rent for $2.99 for a set number of days before expiring.

If Apple can persuade Hollywood to offer its new movies for rent, it could pave the way to offering them for sale. Studios are balking at Apple's pricing, which is currently $14.99 for new titles, compared to around $18 for a new DVD, potentially undercutting a major income source for studios.

The online storefront is emerging as an important sales channel for the studios. Studio executives say they expect revenue from downloads and online rentals to grow quickly and help compensate for slowing DVD sales. Besides Apple, other companies that rent or sell content online include Movielink, CinemaNow and Amazon.com.

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