The new service, according to Bloomberg, would allow customers to rent shows through iTunes for 48 hours. News Corp. is the owner of the Fox network.
Author Peter Burrows said Apple's talks coincide with a new iPod touch with a higher-resolution screen, as well as a new cloud-centric Apple TV with less internal storage starting at $99.
In addition to Fox, CBS and ABC could also become an option in the streaming service, the report said, as the parent companies of both networks are also a part of the discussions. Apple and Disney, the owner of ABC, have a close relationship, as Apple Chief Executive Steve Jobs is the single largest shareholder of stock in the Walt Disney Co.
Rumors of a 99 cent TV show rental deal previously surfaced earlier this summer. That report claimed that the offer would work just like existing iTunes movie rentals: users would have 30 days to start watching the rental, and would then have 24 hours to finish it. But unlike the movie rentals, the TV shows would be streamed instead of downloaded.
Apple has allegedly attempted to broker a deal with TV networks for months to offer a subscription TV plan, but has had no luck.
Apple's 99 cent TV show rentals could be a backup plan of sorts for the company, which is rumored to release a new set top box dubbed iTV as soon as September. Numerous reports have alleged that the device will run Apple's iOS mobile operating system and be capable of running software from the App Store.
Reports have also suggested that the new iTV will have limited internal storage in order to keep the cost of the device down. The new set top box with a small form factor is rumored to have a starting price of just $99. The device would apparently make up for its alleged lack of storage by placing an emphasis on streaming media.