Apple has stiff competition in the online video services space. Companies like Hulu and Netflix are giving Apple a run for the money. As of today, iTunes users must buy their TV episodes to watch them; prices range anywhere from .99 cents to $2.99 per episode.
Consumers do not spend that much at Hulu where they can watch free streaming videos. They may also sign up for a $9 dollar a month subscription on Netflix to watch other videos of their choice.
Apple is analyzing the scenario and in covert talks with NewsCorp, CBS, NBC and Disney to allow users to rent TV episodes from iTunes for .99 cents. The episodes would be available for 24-hours after their original airdate with a 48-hour rental.
There is a possibility that Apple’s 99-cent TV show rentals will be another way to compete with Netfix. The iTv set top box is scheduled for release in September. Analysts say the new device will run Apple’s iOS mobile operating system and is capable of running other software from Apple’s App Store.
The new iTV will reportedly hold only limited amounts of internal data storage in order to keep the cost of the device down. The new device will have a starting price of just $99. The ITV will makeup for the lack of storage by emphasizing streaming media.