Apple May Target TV Show Rentals and Devices

Apple Inc. may be revamping Apple TV
Apple Inc. may be revamping Apple TV

Apple (AAPL) reportedly is going for a two-pronged approach to attack the potentially lucrative TV business. First, Appl is holding talks with the networks about offering two-day TV show rentals. The company is also retooling its current set-top box to slim it down to an affordable $99 for the device, which would stream content, according to a Bloomberg report.

For Apple, such a move would transform its Apple TV "hobby" into a potentially viable revenue stream that would leverage its iTunes service. Under its discussions with News Corp. (NWS), NBC Universal, CBS (CBS) and the Walt Disney Co. (DIS), Apple may offer a 48-hour online rental service for 99 cents per show, according to Bloomberg.

Apple currently sells music and TV shows from its iTunes service, while movies can be rented or purchased. Although Apple reportedly may charge 99 cents per TV show to rent, that's less than the $2.99 price to buy an episode. Apparently, Apple anticipates sales volume will increase more than threefold by lowering the price.

The computer maker will be holding a press conference on Sept. 1 in San Francisco, with speculation running high that it will unveil its revamped TV device and possibly a spiffier iPod, according to an Engadget report.