Apple is in advanced talks with Hollywood's largest movie studios about launching an online film rental service to challenge cable and satellite TV operators.
The service could be significant for Apple. If it signs enough studios, the group will get access to more premium film content.
Apple already sells films that can be downloaded and owned, and has distribution deals with Walt Disney and Paramount. Other studios have shied from tie-ups with Apple because of concerns that digital downloading may hit DVD sales.
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