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. More info about the deal is available in the full article.

Would it be an exaggeration to say that iTunes built the legal music download world? Maybe not - after all, it has 85% of the digital music download market (which is way too much for the entertainment industry's comfort). Apple is the undisputed king of this world. And there are upstarts who want to revolt - Microsoft, Sony, SpiralFrog and a few other brave souls. But a Financial Times analyst reckons they're going to have a heck of a hard time scaling Fortress iTunes' walls.

What is the secret to the success - nay, dominance - of iTunes? The analyst chalks it up to rivals botching up their plans to compete with Apple, but more to key advantages Apple holds in the market.

• First, they've got network effects and technological lock-in on their side. People can share their iTunes-downloaded music with each other's iPods - there's the net. And Apple's digital rights management software (so far) allows this to happen - there's the tech. These two turn the iPod and iTunes into natural partners, feeding off each other's market advantages and popularity. The word for this is "synergy."

• Not one to rest on their laurels, Apple has diversified and segmented their captive market to squeeze out more profits and an even bigger share. There's the video iPod and downloadable videos from iTunes. There's the basic iPod, the Mini, the Shuffle, and the Nano. And there's all the marketing support the company has poured into the iPod, turning it into a style icon and a hot-buy item.

• And finally, perhaps the greatest advantage of all: it pays to be first, it pays to be ahead. History demonstrates that, once established, technology leaders are seldom overthrown by direct competition. No, to seize the throne, you've got to go for the jugular: the business model, the technology paradigm. In the case of Apple, the iPod-iTunes synergy.

Read on for the whole analysis on Fortress iTunes.