MUMBAI: Apple, which changed the way people consumed music with the iPod, is now working on a new online film rental service that will allow movies to be downloaded and viewed on a rental basis.

According to a report in the Financial Times, the move has big implications for the DVD rental industry, as well as cable and satellite operators, which are waking up to the power of video-on-demand.

The company is said to be in advanced talks with Hollywood movie studios about launching an online film rental service to challenge cable and satellite TV operators. Apple already sells films that can be downloaded and owned, and has distribution deals with Walt Disney and Paramount.

Apple’s VOD service would allow consumers to rent films without having to take out a costly cable or satellite subscription, said the report.

With the launch of this new service, Apple will join the likes of Microsoft, Amazon and Movielink that already provide online film rental services.