After selling film and television downloads and changing the way people consume music with the iPod, Apple's latest venture will see it enter a business normally associated with Blockbuster and other DVD rental chains.

The group has been quietly working on a new online film rental service, which will allow movies to be downloaded and viewed on a rental basis. 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.