We’ve heard dozens of rumors about iTunes movie rentals – but this rumor seems very realistic – and it is not simply movie rentals as the spectators at Macworld would expect, it’s done in a new kind of way, Apple style. When you insert an iTunes-compatible DVD from Fox to your Mac or PC, iTunes will start up and prompt you to copy the file into your iTunes library. This file will be in H.264 enhanced digital at 1.5mbps. Which is pretty good quality. I’m pretty sure that these files are intended for on-the-go usage. For example, you copy the files into iTunes, transfer to your iPod and watch it on the plane. This is a new system and I think it will work perfectly. The only problem is that these files are likely to be heavily loaded with DRM, and that’s not good news coming from a company that is trying to push the DRM-free format.
A tipster at TUAW, Stewart, said he bought an early copy of a Family Guy DVD due for release on January 15th (Macworld date), and that it was branded iPod-compatible. He posted pictures and screenshots on the TUAW post linked below.