Apple Seals Online DVD Rental Deal With Fox

In a groundbreaking deal 20th Century Fox will offer its new DVD releases as downloadable rentals on Apple's iTunes Store, the Financial Times reports. New Fox DVD releases will also come with special iTunes-compatible versions of the film that can be easily ripped from the disc. Fox will join Disney as the only other studio offering new releases on iTunes.

An official announcement will likely be made at Apple’s Macworld expo next month. The deal will bolster Apple's already dominant position in the online media sales market. “Fox and potentially other ­studios are coming around to the idea that there is nobody out there to challenge iTunes,” speculated a consulting firm executive. (More iTunes stories.)