iTunes TV rentals expected to highlight today's Apple event

With anticipation for today's Apple (NASDAQ:AAPL) press event at a fever pitch, The Wall Street Journal reports the computing giant will name News Corp.'s Fox and the Walt Disney Co.'s ABC as partners in a new iTunes service offering consumers episodes of popular network television series priced at 99 cents. News of the iTunes rental solution first surfaced late last month--Apple is expected to offer commercial-free episode rentals spanning 48 hours, optimized for devices including the iPhone, iPod touch and iPad; programming would become available on iTunes within 24 hours of its original network broadcast. iTunes presently offers feature films for rental and purchase, but no rental option exists for television programming.

While Apple also approached CBS and NBC to sign on for the new service, only Fox and ABC have committed to the initiative. Some network executives expressed grave concerns over how partnering with Apple will impact their existing revenue deals with cable providers like Comcast and Time Warner--at present, ABC, CBS, Fox and NBC receive about $250 million annually in broadcast retransmission fees industrywide. Insiders tell the WSJ that Fox and ABC consider their participation an outlet to experiment with new pricing and distribution models--in addition, Fox is relying on Apple to assist with its own digital efforts, including an iPad-optimized edition of The Wall Street Journal as well a forthcoming news daily delivered exclusively via connected devices.

Many pundits believe Apple also will introduce an updated version of its iPod multimedia device. Kaufman Bros. analyst Shaw Wu anticipates Apple will unveil an iPod touch with cameras and FaceTime video conferencing--speculation also centers on a smaller iPad Nano with a square shape and touchscreen. "We frankly are not sure if this [Nano] model will see the light of day," Wu writes.

Music industry executives additionally forecast the introduction of iTunes social media integration enabling consumers to share recommendations and playlists via services like Facebook and Twitter. All Things Digital reports that Apple has not approached its label partners to revamp their current iTunes licensing deals, effectively guaranteeing the much-rumored, cloud-based iTunes streaming service is on hold, at least for the foreseeable future. Record execs instead believe Apple will unveil a lightweight, web-based iTunes giving users the flexibility to share their musical interests (but not actual music content) with their social media contacts. "There's a reason [Apple CEO] Steve Jobs calls it an iPod--he thinks you listen to music by yourself, on your headphones," said one label executive. "But lots of people like to share music, and if this lets you do that, that's exciting."

Another popular music biz rumor: Apple will roll out a wireless system simplifying management of iTunes purchases, allowing consumers to move copies of songs purchased via iPhone to a laptop (or vice versa) without manually connecting the two devices. All Things Digital notes that Apple's existing license agreement allows users to sync iTunes music across five devices at a time, so the wireless service would not necessitate changes to its current label licenses--likewise, social media integration would also fall within the parameters of the storefront's established agreements.

Apple's media event is slated to begin at 1 pm ET. Be sure to check back with FierceMobileContent later today for full coverage and analysis.

For more on the iTunes TV rental service:
- read this Wall Street Journal article

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