It looks like Fox will soon be joining Disney in offering new releases on Apple's iTunes service, but in a decidedly different way.

According to the Financial Times, Apple and 20th Century Fox have inked a deal for a new online video-on-demand service that would let consumers rent Fox releases as soon as they come out on DVD.

Right now, new releases from Disney are available for purchase rather than for rent. Paramount, MGM and Lionsgate are also offering some older titles for sale.

The deal will also mark the first time that Apple expands its FairPlay DRM system beyond its own products. According to the FT report, a digital FairPlay-protected file will be included in new Fox DVD releases so users can rip film content from the disc to a computer or their video iPod.

The deal will likely be announced at the Macworld show on January 14, 2008. Apple is also reported to have been in talks with Sony, Paramount and Warner Bros about making their new releases available on iTunes.