According to the financial times, Apple and Twentieth Century Fox have finalized negotiations and struck a deal to supply movie rentals for the iTunes Store. It is suspected that the deal will be formally announced at Macworld.

Fox will not be the first company to offer films on iTunes; Disney currently has a faraway list of films available through the online store, as well

as a few from other studios. However, that is the first enactment of a rental service of any kind for Apple.

Also expected with the agreement is the inclusion of iPod-compatable files on Fox DVD’s, allowing iPod owners to place the special video file onto their iPod instead of illegally ripping the DVD and converting to MP4 format.

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