Cable Companies to Apple: OK, Let's Rumble

Jobs plans video push, but Hollywood doesn't plan to give him any special deals

By Laila Weir, Newser Staff

Posted Jan 11, 2008 3:45 PM CST

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Cable Companies to Apple: OK, Let's Rumble — A customer boots up the just released Apple TV on display at the Apple store in Palo Alto, Calif., in this March 26, 2007 file photo. Apple TV isn't going to add much to the iPod and Mac maker's riches, according to a market research firm that took apart Apple Inc.'s newest gadget. (AP Photo/Paul Sakuma,... (Associated Press)

Steve Jobs wants to take the world of video entertainment by storm, but Hollywood and the cable companies aren’t scared, reports BusinessWeek. Apple is planning an iTunes movie rental service and is well on its way to sealed deals with four major movie studios, but it’s not getting any special breaks. New releases will rent for $3.99, the same as Comcast on-demand video.

"We make a ton of money by offering video on demand with cable operators, and we're not about to jeopardize that," said a studio executive. Meanwhile, Jobs may not score any deal at all with Apple rivals Sony and Universal. Still, a planned upgrade to its Apple TV box could bring surprises, especially if it adds a tuner to take on cable box capabilities. (More Apple stories.)

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