The Financial Times is reporting that Apple is in advanced talks with Hollywood’s largest movie studios about launching an online film rental service to challenge cable and satellite TV operators.

Apple, which declined to comment, is believed to be aiming for an autumn release.

A film would cost $2.99 for a 30-day rental. Its digital rights-management software would allow films to be moved from a computer to at least one other device such as the video iPod or iPhone. The software would prevent movies being copied.

Sony Pictures Entertainment, 20th Century Fox, Paramount, Metro-Goldwyn-Mayer, Warner Bros and Disney declined to comment. Privately, though, the studios are excited about Apple getting into VOD. “When you think about Apple customers they are so connected to the brand they will try anything to do with it,” said one senior studio executive.