Apple and Fox's Movie Rental Deal Also Includes Pre-ripped iPod/AppleTV Versions on DVDs

So not only are Apple and Fox colluding for a movie rental deal on the iTunes service, they've got a special deal in place that allows users to rip Fox DVDs onto their computers. Financial Times isn't clear on exactly how the format works, but from what we gathered from past news, the files are going to be pre-ripped and reside on the disc already optimized for iPod/iPhone or AppleTV formats.

Back in early December, we saw a rumor that movie prices on iTunes were going up in order to pave the way for having iPod/AppleTV versions of movies on discs. Which studio did we tie to that rumor? Fox, the one that FT is saying already struck a deal. However, this new pre-ripped format is only really useful for people who don't already know how to rip their DVDs, and people who don't have the time to sit there for an hour while their computer does its thing.

As for the rentals, we've seen evidence of it for a long time, and what we've seen points out that it's going to be protected by FairPlay DRM, and is the first time Apple's licensed FairPlay to a third party.

It's also very similar to this Die Hard and Harry Potter deal that has PlaysForSure versions on the discs, and can be played on anything that supports Windows Media DRM. [Financial Times via Valleywag]