Apple to offer movie rentals on iTunes

SAN FRANCISCO, Dec. 29 (UPI) -- Apple Inc. is set to announce at an upcoming San Francisco convention that it will begin offering movie rentals through its struggling iTunes movie service.

With the film portion of the iTunes store is trying to find its niche, Apple has signed an agreement with Fox and Disney to upgrade services with movie rentals, Variety reported Saturday.

Studio sources said that the deal will be officially announced next month in San Francisco during the annual MacWorld Conference and Expo.

The move will help Apple catch up to fellow media competitors like Movielink and Xbox Live.

With other major studio groups like Paramount and MGM already offering their movies for purchase on iTunes, Apple's rental efforts could expand ever more.

Variety said Apple is expected to price its iTunes movie rentals between $2 and $5 for a 24-hour rental.