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Posting from San Francisco: The longstanding rumor about Apple offering movie rentals through iTunes was true. Steve Jobs just announced the plan here at the Macworld Expo. He also unveiled an updated Apple TV device -- Apple TV "Take 2," as he called it -- that he says will still work with a computer but won't require one, letting people download movies and other content directly over the Internet on their televisions.
Apple TV has until now worked exclusively by pulling content from a computer to a TV over a home network -- treating it as an "accessory" to the computer, as Jobs put it. Jobs showed a slide of the logos of companies that have tried similar approaches -- including Amazon, Microsoft, Netflix and Apple. (Microsoft does offer direct movie and video downloads via the Xbox Live online service.)
"You know what, we all missed," Jobs said. "No one has succeeded yet." He said people should be able to access content without a connection to the computer if they want.
Titles from the iTunes library will be $2.99 to rent, and new releases will be $3.99, Jobs says. Titles in high-definition will be $3.99 and $4.99, respectively. Renters will have 30 days to start watching, then 24 hours after that point to finish the movie. Jobs cited support from every major Hollywood studio. The rented movies will work on Macs, PCs, iPods, iPhones and on televisions via Apple TV.
The new Apple TV features will be available as a free software update to existing owners in two weeks, and the Apple TV devices will drop in price from $299 to $229, Jobs said.
An interesting footnote in the music market: Jobs reiterated that he doesn't think most people will be interested in a subscription or rental model for music.
Update, 10:06 a.m.: Jim Gianopulos, chairman and CEO of 20th Century Fox, just said the studio will start offering digital copies of movies on DVDs for playing on iPods and iTunes.
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Posted by number.61 at 1/15/08 12:23 p.m.
All I can say is FINALLY! An update to the Apple TV was needed so bad! The device is actually usable, and having HD content is a dream come true.
I was surprised they made it a free update. Figured they would make everybody buy a brand new Apple TV.