Report: iTunes to offer Fox movie rentals

Apple and News Corp. have signed an agreement to offer Twentieth Century Fox movies for rent through the iTunes Music Store, the Financial Times reported Thursday.

Users would be able to download the latest Twentieth Century Fox movies from iTunes and view them for a limited time, the Financial Timesreported, citing "a person familiar with the situation."

As part of the agreement, Twentieth Century Fox will use Apple's FairPlay digital rights management technology in future DVD releases, marking the first time someone other than Apple has used the technology, the report said. Using this technology would allow users to copy movies from a DVD onto an iPod, it said.

The deal between Apple and Twentieth Century Fox will "likely" be announced on January 14 at the Macworld Conference and Expo, the Financial Times said.

Besides Twentieth Century Fox, Apple is holding similar talks about online movie rentals and FairPlay with Sony Pictures Entertainment, Paramount and Warner Bros., the Financial Times said.

Apple, which saw its share price top $200 for the first time on Wednesday, currently offers some movies from Walt Disney and other studios on iTunes, but these are only available for purchase, not for rent.

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