The big news wasn’t what you heard Monday — it was what you didn’t hear. Monday the Associated Press reported new rumors that Apple would open an online movie rental service by this fall.

The iTunes store already sells movies, news reports noted, including big-studio releases from Paramount, Disney, and Lion’s Gate. Now it wouldn’t just be purchases; 30-day rentals of digital movies would cost about three dollars apiece. And best of all, movies could be transferred off your computer. (But only once.)

It may not be a done deal, according to the Wall Street Journal. Monday they reported that “The service is far from a certainty with several details to iron out,” citing “a person close to the situation.” The problems listed include Apple’s $14.99 pricetag for digital movie purchases (since the studios routinely charge $18 for a DVD) — and the ability to watch the movie on more than one device.

Maybe Apple’s found a way to make their gadgets even more attractive: having an online service to supply full-length movies from the major studios. Imagine watching Shrek 3 on your phone or mp3 player for just $2.99. The Journal suggests Apple could even sell more desktop computers.

But I’m wondering if it’s all about the iPhone. Monday Apple also announced a Windows version of their Safari browser, and added that they’d be running a full-featured Safari browser on the iPhone. This obviously makes it easier for Windows developers to go after the iPhone market segment. But maybe both these news stories show a larger Apple strategy for attracting customers to Apple’s next product line of telephony devices.

That could be the reason Steve Jobs is scrambling all across California. He’s lining up compelling content for Apple’s iPhone — and not just applications, but movies too.

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Entry was posted on Tuesday, June 12th, 2007 at 2:33 am under Apple.

Read more entries by David Cassel.
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