US computer and software group Apple is in advanced talks with Hollywood's largest film studios on launching an online film rental service to challenge cable and satellite television operators, the Financial Times reported on June 11.
Apple already sells films that can be downloaded and owned and has distribution deals with Walt Disney and Paramount. Other studios have shied away from tie-ups with Apple because of concerns that digital downloading may hit DVD sales.
The report said Apple is believed to be aiming for release later this year. The newspaper said the service could be significant for Apple because if it signs enough studios the group will get access to more premium film content.
The software would prevent movies being copied. One studio executive said the service would "compete against cable companies and anyone else offering VOD (video on demand) into the home."