The Financial Times is reporting that Apple and Twentieth Century Fox have reached a deal to provide movie rentals on the iTunes Store, likely to be announced at Macworld. While Disney sells a full line of films on iTunes and other studios provide catalog titles, this is the first rental arrangement to date. Movies are expected to be downloadable for a limited-play window. Equally important, the agreement is expected to include onboarding of iPod-compatible video files with Fox DVDs, so that iPod users can load and go when the DVD is purchased (rather than ripping the DVD into MP4 video).
More details as we get them.
[via PaidContent.org -- thanks Gordon]