Netflix shares have been taking a beating this morning after returning some pretty positive earnings news. On Monday, Netflix reported a first-quarter profit that rose 35% as subscribers increased by 21%. Revenue rose to $326.2 million from $305.3 million, an increase of 7%.

In much the same way it upended online distribution of music, Apple may now be poised to redefine the way movies are rented online. According to published reports, Apple (AAPL) and Fox (NWS) plan to bring movie rentals to Apple's popular iTunes Store, and through that to its family of iPod media players and the iPhone.