3. iTunes and Apple TV

An iTunes movie rental deal with some major studios was anticipated here at Tom’s Guide, but no one expected something this complete. Jobs announced that movie rentals will be available from every major studio, including 20th Century Fox, The Walt Disney Studios, Warner, Paramount, Universal Studios, Sony Pictures Entertainment, MGM, Lionsgate, and New Line Cinema.

Rentals will cost $2.99 for library titles and $3.99 for new releases, with a $1.00 extra charge for HD titles. Customers will have 30 days to start a movie once renting it. Once the movie is started, it can be played as many times as desired for 24 hours. The 24 hour limitation may be the one item in the pricing structure that draws criticism, with retail stores typically offering 5 to 7 day rentals. The rentals can be ordered from and played on the updated iPhone and iPod Touch, and (if you have an Apple TV box) directly from your widescreen TV, no computer required.

The Apple TV Rental Interface. I’m sure it’s just a coincidence that we’re seeing so much of Ratatouille, a Pixar title.

Jobs referred to the revitalized Apple TV as “Apple TV, Take 2”. Current Apple TV owners will require a software update to enable movie rentals, it will be available at no charge and will download automatically later this month. Apple TV will also be available at a lower price, starting at $229 for the 40GB model, about $70 less than the current price. The 160 GB model will be available for $329, again about $70 less than the current price of $399.