The Financial Times confirmed today what many of us have already suspected, that Apple is working with movie studios to finally offer video rentals from iTunes for the low, low price of $2.99 for 30 days worth of access, including the ability to watch the film via iPod or iPhone.
If this comes to bear this fall, it will be the ultimate video on demand solution, and will help the Apple TV reach its full potential. If Apple has enough relationships with leading studios to deliver an impressive on demand video library, we will be canceling our Netflix account, and will start spending our money in $2.99 increments. Forget going to the theater for $10 or more per person. We'll wait for iTunes.
More of my previous comments on Apple and the dramatic effect the company could have on the video rental market can be found in the below links.
The Apple Blog: How Will Apple Compete With “On Demand”?
louisgray.com: How Apple Could Crush Netflix Now
louisgray.com: The Apple TV Debate is Upside Down
louisgray.com: What is the True Value of an Entertainment Download?
More discussion of the Financial Times news can be found on Ars Technica, Paidcontent.org, Business 2.0, Mashable! and the Wall Street Journal.