Movie downloads are expected to cost $14.99 for new releases and $9.99 for older films. Business Week claims that Apple will pay $14 to the movie studio for each download.
Disney is a likely launch partner. Apple chief executive Steve Jobs is the largest single shareholder in Disney, and holds a position on the company's board after the entertainment giant acquired his Pixar animation studio last year.
Apple currently sells video downloads of several television shows at $1.99 per download.
The launch of Apple's movie download service is said to coincide with new iPod models featuring widescreens that offer a better viewing experience than current video iPods.
Apple has not commented on its movie download plans. The company has scheduled a launch event on 12 September in San Francisco.
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