Apple Closes In on Hollywood: Businessweek reports that Apple may be close to striking a deal with most of the major movie studios to provide movies for the iTunes store.

Apple may have had to compromise on a number of issues including pricing in order to get everyone on board. Apple has reportedly agreed to pay studios “closer to the $17 wholesale price” that they get on physical DVD sales. In return, studios may offer online releases on the same day as their DVD debut. Businessweek states it’s unclear if Apple will increase end-user prices or simply absorb the cost in an effort to promote iPod and Apple TV sales. Apple currently charges $14.99 for new releases and $9.99 for older titles.

This long rumored feature is finally becoming a reality. In fact, Bloomberg reports that Warner Brothers, Paramount, Walt Disney Co., Lions Gate Entertainment Corp, and Fox will begin renting movies through Apple’s iTunes Store in an announcement scheduled for January 15th at Macworld.

I’m sure people buy movies from iTunes, and will probably enjoy renting them as well; after all, the new generation of iPods have wonderful video capabilities. Let’s not forget the Apple TV when considering this story. Nevertheless, I have to ask: What’s the point? Money? Sure - even with marginal success iTunes rentals will generate some cash, but what’s so “Think Different” about that? With Netflix prepping a set-top HD subscription service, it’s hard to consider anyone offering single price rentals relevant, let alone consumer friendly. Portability is about the only plus with the iPod- but is that enough? Probably. Steve Jobs has admitted that the iTunes music store makes little income for Apple, so one would have to assume rentals will simply add to the point of there online sales: to drive iPod sales.

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Filed under: Geek, Movies, Music