According to Bloomberg, the plan is to offer Fox programmes for US$0.99 for a 48-hour rental period, commercial free. Programmes aired on Fox through traditional TV will be available for rental via iTunes within 24 hours.
The content deal will give Apple users access to the most popular television programmes across all iOS devices including iPad, iPhone or iPod Touch.
If Apple manages to close the deal, it will compete in the same category as Netflix, Amazon and Hulu.
A new generation of iPod Touch is currently in the pipeline with higher screening resolution, similar to iPhone 4. Reports also indicate that Apple has developed a more affordable Apple TV set-top box for US$99.
Apple TV was introduced in 2007, but sales has not lived up to expectations.
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