Apple TV May Offer 99-Cent Rentals
Apple's annual fall event has been set for Wednesday, Sept.1 and insiders say Apple will announce iTunes TV episode rentals for its Apple TV device.
Apple is in "advanced talks" with News Corp., CBS Corp., and Walt Disney Co. to allow iTunes users to rent their programming for 99 cents an episode, according to Bloomberg.
Apple aims to compete with rivals such as Netflix and Hulu Plus, both of whom offer programming by monthly subscription at around $10.
While Netflix and Hulu offer unlimited content for a monthly fee, Apple's à la carte model could appeal to the infrequent TV viewer. Episodes will be available to Apple’s rental service within 24 hours of their air dates, comparable to Hulu Plus. But watch more than 10 shows, and Apple loses its value proposition.
However, Apple will offer its rentals without ads, which may be worth the price to some viewers, compared to ad-laden Hulu Plus.
Fox and ABC are closer to reaching an agreement than CBS and NBC, which may not take part in the Sept.1 event, the people said. CBS and NBC would add programs to the rental service if terms are reached, according to the report.
Bloomberg sources leaked more news about the upcoming Apple event: Apple will introduce a new version of its iPod touch music player with a higher-resolution screen and a $99 version of its three-year-old Apple TV set-top box.