According to BusinessWeek, Apple is set to make some compromises to movie studios in an effort to improve its iTunes movie catalog (and hopefully sell more Apple TV set-top boxes). It would appear that Apple is nearing agreements with a number of studios. To do so, BusinessWeek suggests that Apple has agreed to pay closer to the USD$17 wholesale price that studios get from physical DVD sales. Paramount and Warner Bros are apparently close to signing. Also in negotiations are Fox and Sony Pictures. It is not clear if the increase will be passed on to customers or if Apple plans to absorb it to keep prices more attractive.
Sources also suggest that Apple will rent movies at a cost of USD3.99 per 24-hour rental. Fox is apparently already on board and Warner Bros. and Paramount could be on board soon as well.
The agreements are not all signed so may not be announced next week when Macworld 2008 kicks off.