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Now that Apple has announced that it is renting movies off iTunes and improved Apple TV, it looks like the rental/download market is getting ready to blow up. According to analyst firm ABI research, video downloads will grow from 215 million in 2008 to over 2.4 billion in 2012. About half of all downloads will be for online movie rentals. Today, the online movie rental business is slow-going. There's Amazon Unbox, NetFlix Watch Now, iTunes and a few other scattered video download businesses. Additionally, competition will come physical rentals like NetFlix and Blockbuster, as well as cable and satellite companie. So the competition will be fierce and now everyone's trying to get a piece of the pie now before a clear video download winner emerges. Additionally no one is sure what the business model will be: subscription, rent-to-own, rent. And what kinds of restrictions should be set on downloadable movies, such as copying to DVDs or portable media players. [ABI Press release] [tags] movie rentals, online movies, iTunes, Apple, Apple TV, video downloads, online movie rentals, Internet video [/tags]