The Financial Times claims that Apple is prepping a video rental service that would run through the iTunes store.

As the FT has it, users would pay around 3 bucks American to download and watch the video for a period of 30 days. During that time, the movie could also be transfered to another device (iPhone, iPod) to be viewed as well.

13 Sep 2007

FT claims that there is a lot of support for the venture amongst movie studios. Nobody was quoted on the record, but one unnamed source estimates that the service could challenge cable companies and their new-fangled "Video on Demand" programs.

More importantly, it could actually make the AppleTV a somewhat relevant device.