The Financial Times is reporting that Apple has reached an online film-rental deal with 20th Century Fox. Negotiations between the two have been rumored for a few weeks now, but make no mistake, this is an absolutely huge win for Apple in a few regards.

First, they've brought aboard another major content partner to the iTunes video store - something that should ease concerns after NBC left. Second, this is online film-rentals, this is going to single-handedly resurrect the AppleTV and could very well finally do for the iTunes video store what digital music has done for the iTunes music store. But there is also a 3rd huge part - apparently this agreement will allow Fox to include Apple's FairPlay digital rights management system on its DVDs - which will allow them to be ripped onto people's computers and placed iPods, iPhones, etc.

Apple is also said to be in talks with Sony, Paramount, and Warner Brothers about similar deals, but Fox may be the only one done in time to announce in a few weeks at MacWorld.

Though specifics weren't disclosed, the previously rumored deal for iTunes Movie Rentals was $2.99 for 30 days. If that is true I will be quitting Blockbuster and Netflix immediately and picking up an Apple TV just as soon as I'm sure a new one isn't coming at MacWorld.

In one fell swoop it looks as if Apple has fulfilled 2 of my 4 steps for saving the iTunes Video Store - and certainly the 3rd and 4th seem to be possibilities going forward.

This is huge, huge news.