On a January day in 1981, my sisters and I experienced unbridled glee when our father came home with a shiny new VCR. Imagine: Movies. In our own house. Whenever we wanted. What a world! It was an enormous, top-loading hunk of metal and plastic that I'm sure is currently at the bottom of a Pennsylvania landfill.

The VCR's arrival spawned the movie rental shop, the biggest of which (In Scranton, anyway) was Blockbuster. Today, services like On Demand, Netflix, Hulu and to a lesser extent Apple TV have forced them to re-think their business model, and they're getting into the video on demand business as well.

According to AppleInsider, Blockbuster's vice president of digital entertainment Kevin Lewis recently told Reuters that they're going to make downloadable content available to TiVo customers soon, and Apple after that.

That's all the detail we've got, but we'll assume he meant the Apple TV and iTunes. We'll keep an eye on this story and keep you updated.

Update: As the commenters have noted -- this service is currently only available for US customers. I truly apologize for my US-centric slant.

Last month, Netflix finally started to roll out its Watch Instantly service to Mac users. You needed to opt-in to use the feature, but it was available for those who wanted to access it. Today, Watch Instantly is available for Mac users without having to opt-in -- as long as you meet the minimum system requirements (Intel Mac running OS X 10.4.8 or higher, and at least one GB of RAM).

Watch Instantly is a great way to catch up on a movie, TV show or documentary without having to wait for the movie to come in the mail. You don't get the extra features or super surround sound, but it's fast, the quality is good and it is free to use. If you have a Netflix Unlimited plan, you can watch as many movies a month as you want. If you have a limited plan, the number of films you can stream is also limited.

You can access Watch Instantly from the tab on the main Netflix page and browse through the selection of movies and TV shows. You still need to install the Microsoft Silverlight plugin, if you don't already have it installed. Watch Instantly works in Firefox 2 or higher and Safari 3 and up.

Thanks to everyone who sent this in!

Danny Gorog at APC Magazine has written a really nice analysis of something that's rather strange when you think about it -- why aren't there any high definition DVD drives on Macs yet? It has been asked for by a few folks, but by and large, Apple has pretty much ignored the whole high definition debate. And even now, when we supposedly have a winner in Blu-ray, Apple hasn't pulled the trigger, and consumers, as Gorog notes, haven't even really cared much.

In fact, across the entire PC market there's not a lot of wholehearted support for Blu-ray or any major high definition formats. It's not that DVDs are "good enough" -- HDTVs are selling by the truckloads -- it's more that consumers, apparently, just don't want to settle on another format. And that may be the key to this whole thing -- Apple has a vested interest in selling content, and implementing some other content producer's format into their machines will take away from their best HD content channel yet: iTunes.

And customers, happy to not have to buy yet another permanent format of their favorite movies, may be satisfied with having no next-generation disc format. I, like many users, have already watched tons of HD video without ever having bought a Blu-ray disc. If Apple doesn't need the drives to deliver the same quality content, why should they bother?

Good news, everyone! TuneCore has finally introduced a video distribution option for iTunes.

If you're a wedding videographer, a school play coordinator, or a computer tutorial specialist, you can now package up your video for a flat fee (60 minutes costs $550, 90 minutes costs $770, other lengths vary in pricing according to TuneCore). Here are some points you'll want to know.

• The approval process for iTunes usually takes about two weeks and must meet the iTunes store terms and conditions.
• iTunes store customers can either buy or rent your video.
• All proceeds go directly to you after Apple takes its cut. The flat fee covers all of TuneCore's take.
• You retain all rights and the agreement is non-exclusive.

Want more information? Fire off an email to movies@tunecore.com or visit their webpage.

They may be first to see the sun, but they've been waiting quite a while for movie rentals and purchases from the iTunes store -- now that patience has paid off, as movies have now arrived in a land down under. Aussie and Kiwi iTunes users can purchase and rent movies to their hearts' content. New releases on DVD will premiere day-and-date on the iTunes store at the same time as they're on sale in physical form in the two new countries of service.

iTunes movie purchases in Australia will kick off the price tier at A$9.99 for catalog titles, A$17.99 for recent releases and A$24.99 for new releases; rentals will be A$3.99 for library title rentals and A$5.99 for new releases. iTunes movies in New Zealand start at NZ$9.99 for catalog title purchases, NZ$17.99 for recent releases and NZ$24.99 for new releases, rentals are NZ$4.99 for library titles / NZ$6.99 for new releases. As in the US store, getting the high-def version costs an additional dollar. Rentals can be held for 30 days before you start watching and then you have 48 hours to finish (a whole day longer than US customers? Must be the International Date Line).

Thanks to everyone who sent this in

If you find yourself looking at your Apple TV every Tuesday to learn what new releases Apple and the movie studios have blessed us with, then you might find Apple TV Junkie really useful. That's because Apple TV Junkie posts all of the new releases of High Definition rentals -- along with other important Apple TV news.

In one glance of the page you can find out:

• The $.99 movie rental of the week
• How many HD movies grace the iTunes shelves
  
• Top 10 movie purchases
  
• Top 10 movie rentals
  

So, if you're always looking for the hotest new movie rentals on the Apple TV and iTunes, you can make Apple TV Junkie your first stop.

[via Tekzilla]

Apple fans across the pond have long complained about their inability to purchase or rent movies from within iTunes. Those users now have reason to celebrate (and maybe give that Apple TV some use), as movies are now available in the UK iTunes Store!

According to the press release, 700 titles are available to purchase or rent, with over 100 titles available in high-definition. Some films will be available to purchase the same day as the DVD release.

When it comes to rentals, the policy seems to be pretty much the same as the US store, with one notable exception: the rental period is 48 hours. That should make LOTS of UK users happy.

Pricing is as follows:

• £6.99 for library titles
• £10.99 for new releases
• £2.49 for library rentals
• £3.49 for new release rentals
• High definition rentals will be £1 more

Thanks to everyone who sent this in!

This is the kind of stupid I am: I go to the iTunes store and when movies sound really good, I don't want to rent them -- because what will happen if I like them and then decide to buy? I mean, we rented Wii "Cooking Mamma" from Blockbuster and then my kids fell in love with the game so I ended up buying it, paying a $6 premium for trying it first. The iTunes store has the same dilemma. Hey Apple, you really ought to give an option of "Liked it? Buy it!" for $2 off or so after renting.

So am I unique in my irrationality here? Do good movie reviews make you hesitate to rent? Would an iTunes rent-to-own option help push you over the edge into renting? Speak up in the comments.

As Macworld has reported, Apple has failed to meet their target of 1000 standard definition rentals and 100 HD rentals, that they claimed would be available by the end of February. While the number of HD titles available via Apple TV is pretty close to the promised figure, 91 according to Macworld, not all of these films offer DD 5.1, which was one of the hyped HD features.

As for regular rentals, by Macworld's calculations, around 400 titles are available (my own calculations show 417), which isn't a substantial increase from my own calculations back in January. The total number of available films, for rent or purchase, available via iTunes is teetering around 800 by my calculations. Clearly, this is well short of 1000 titles.

So the question becomes, why is there a delay? Some of the editorials that have appeared online seem to take the position that Apple failed to meet predictions in part because of delays with the Apple TV software. While I could see how that might affect the number of available HD titles (and remember, HD titles are much closer to meeting expectations than regular rentals), this just seems too convenient.

It has also been inevitable that parallels be drawn between the number of available movie rentals and the delays with the iPhone SDK, as if there is some sort of pattern in Apple not meeting expectations. To me, this makes absolutely no sense. As far as I can tell (and granted, I'm no expert), the iPhone SDK is wholly unrelated to iTunes and the iTunes rentals. The fact that both systems have had logistical problems with roll out is unfortunate, but I can't see how they are either related or indicative of a trend.

So what's the real story? While I doubt we will ever get a definitive answer, I think Ars Technica has the most plausible theory: licensing issues with the movie studios. It's no secret that the studios have been reticent to fully embrace digital distribution. Personally, I think the fear that digital rental sales could cannibalize home video sales is understandable. Home video attributes for a huge amount of the studios return on investment and embracing one model at the risk of another must be scary.

Plus, it is clear that Apple had to cede to the studio demands just to get the rental agreements in the first place. True, all the major studios are represented, but certain production companies still have the right to refuse to appear on iTunes. Apple also conceded to flexible pricing and a 30-day exclusive DVD window (if the studio chooses to invoke it). Apple does not possess the power they have in music sales in the video space, as such, I find it more than plausible to believe that they are more at the studio's mercy for when films will be available and on what terms.

Undoubtedly a large library was one of the keys to iTunes' success in music. It is crucial that Apple achieve something similar if they want rentals to succeed. It's easy to blame Apple for dropping the ball, but in this case, I really think this is something that is out of their control.

[via Ars]

Many of our readers are noticing that rental titles reach iTunes more quickly than expected. Didn't Apple promise new titles 30 days after the DVD release? TUAW reader Robbie Taylor wrote in to let us know that Michael Clayton hit the iTunes "shelves" within just a day or so of its February 19th store release. Is this something that you're seeing as well? Let us know in the comments.

Now that iTunes rentals have launched, it has become kind of tricky deciphering what movies are available to rent, what movies are available to purchase, and what movies are available and what movies can be rented or purchased.

While Apple promises that more than 1000 movies will be available to rent by the end of February (including over 100 in HD with Dolby 5.1 sound), the current rental total (as of today) is about 375. And although Apple doesn't have a clear "rental" section at this point in time, finding out what films are available to rent is pretty easy. Just do a blank power search for movies and check the box that says, "Search movies that are available for rental." That will then give you a list of 150 titles at a time of all the films available to rent. Click, more results to get the next page of results.

The long-rumored iTunes rental service is finally up and running. For many users, the most attractive part of the service (and certainly the only part that really sets it apart from any of the other online rental options) is the ability to transfer your rental to an iPod, iPhone/iPod Touch, or third-generation Nano for playback on the go. Actually, let me rephrase that: your iPod Classic, iPhone/iPod Touch or third-generation Nano. That's right boys and girls -- if you are one of the millions who have 5 and 5.5G iPods with video, no iTunes rentals for you. I suppose that's one way to get people to upgrade.

There was an explosion of applause during yesterday's keynote when Steve Jobs announced rental compatibility with every iPod. Something tells me that if it had been understood that it only included every current generation iPod, the response might have been more akin to the boos that erupted when it was announced that the iPod Touch software update is $20. Update: Evidently, Steve did say "current generation iPods" - in any event, it was not made clear that 5/5.5G iPods would not be compatible. I mean, I for one was not expecting the message below when trying to test out this whole Rentals scheme:

So, why are previous generation iPods incompatible with iTunes Rentals? Pure speculation leads me to believe that the whole authentication-chip for TV-out "update" to the Classic is at the root of the incompatibility. I guess it would just be too much of a risk for Apple (and the movie studios) to allow 5G customers connect their iPods to a TV via an open TV-out cable so that the SD content could then be captured using the analog hole. Because really, circumventing the iPod rental system using TV-out is how people really want to pirate digital media. Not through BitTorrent or breaking the actual iTunes copy protection. No, individuals are going to capture the analog signal from the TV out on their iPod and then convert that back into digital, all for sub-DVD quality movies. Makes perfect sense. (Not.)

Well, at least I now have an actual reason to look at buying an iPod Classic aside from capacity. Still, this and the lack of Front Row rental access is not really doing the best job of convincing me that iTunes rentals have a place in my digital life.

Update: As some of the comments have pointed out, the reports about the iPod Classic's only working with certified Apple TV-out cables might be untrue. I don't have an iPod Classic so I can't verify it one way or another. Again, that was just pure speculation on my part for some logical reason for 5/5.5 G incompatibility. Update 2: After looking at iLounge's dissection of the AV cable, I feel confident that an authentication chip is in fact required for the new models. Is this related to the iTunes rentals? That remains a mystery.

Other comments have raised the question of the quality of the rentals being too high for the 5G iPod. This I can unequivocally state is NOT true. As a test, I went ahead and bought "Chuck & Buck" from iTMS. Not only was the file size identical (1.06 GB), iTunes itself saw no difference between buying the movie and renting it. I was able to transfer the newly purchased copy of the film to my iPod with absolutely no problem. This is NOT a matter of hardware not being capable, it is a decision for whatever reason, not to update the software on older generation devices to work with the new rental system.

Five years ago, my wife and I often rented movies. "I think I'll get a movie on the way home from work," I'd think. It was spontaneous and simple. Then it happened.

We had children.

To say that parenthood is life-changing is like saying the sun is hot. While we were busily trying to keep a brand new human being alive (incidentally, there's no manual -- not even a supplement from Pogue -- the UI stinks and unexpected core dumps are frequent), anything as trivial as bringing home a copy of Dumb & Dumber fell off the radar completely.

I miss the simplicity of watching a movie minutes after realizing I'd like to, and being rid of it when I'm through. Since we abandoned the brick-and-mortar video store, that scenario has eluded us.

We got an interesting tip from "Jack", who noted that you could affect the time remaining on an iTunes movie rental by altering your system time. I gave it a shot to be sure. It's true, if you're willing to offset the date on your computer until you finally have time to watch that movie, you can get past the 30-day time limit.

It was also noted that if you fast-forward your calendar to the due date of a rental, iTunes will remove the movie from the library but apparently not from your drive. That seems odd to me, but that's the way it works, at least if you switch the date up yourself. And sure, you could get a little creative with a DVR and some streaming output, but the price isn't so bad to me that it warrants the extra effort. My movie-watching habits seem to be in line with Apple's plan: I generally watch a movie once no matter how good it is. Ultimately, it's just a matter of finding the time to do it.

Thanks, Jack!

Blockbuster and Netflix's stocks both took big hits based on what we just heard Steve say at Macworld. Blockbuster has dropped a handy 15%, and Netflix "tumbled 6 percent" already this afternoon (although it's jumped back a bit since then), according to CNN Money. Apparently investors are convinced that movie renters would rather fire up iTunes than run out to the video store or wait for a movie to come in on their Netflix queue.

Apple, however, isn't doing that well either after today's announcement. On the day, they've dropped almost $11 as of this writing. But while this Keynote may not quite have met expectations (lots of people were expecting Cinema upgrades, or something a little less traditional than the MacBook Air), this very likely isn't an actual downturn in the ol' Apple hype -- anyone can see that iTunes movie rentals will very likely make them a lot of money. Rather, it's probably* the result of Keynote investors selling off the stock they picked up before the event. In short, it'll take a lot more than an afternoon to see what effect today's announcements really have on stock prices.

*All of this commentary and analysis is given by someone who has little to no experience in stock trading, and should not be taken seriously by anyone.