Apple's Apple TV product will be offering $1 video streams instead of downloads, if the latest rumours are to be believed.
According to an article posted on tech blog NewTeeVee (opens in new tab), the move will be the next step in Apple's efforts to transform its iTunes music management software into a cloud-based web app.
Citing sources within Apple, NewTeeVee reports that the company is currently in talks with leading TV content providers to allow Apple to offer individual episodes for 99 cents.
Sources also confirmed that the rental service would work in a similar manner to its current iTunes video rental service. Users who purchasing a video will have 30 days during which to watch it. Once started, the video must be watched within 24 hours.
Experts believe that if launched, the new Apple TV $1 video rental platform will provide serious competition to video streaming service Hulu, which allows users to watch as many videos they want for just $10 per month.
Hulu hopes to gain an edge over Apple with its Hulu Plus service, which will be soon available to users of a whole army of entertainment platforms including Sony PlayStation 3, Xbox 360 and internet enabled TVs from Samsung and Sony.