If they are going to charge UK consumers for this it ain't gonna be popular. The iPlayer service is free. Also, to get over the DRM issue, why don't they use RealPlayer? It has DRM functionality on Mac, PC and Linux.😕
Real's DRM doesn't time out the content in a rental model, which is why the BBC has to have DRM in the first place.
The BBC only own transitory licences to most of their content. The iPlayer allows that to be extended a bit, but doesn't go to making it available to be kept permanently.
Lots of confusion in this thread, so lets try and sort it out.
There are two parts of the BBC - The main BBC (who are licence fee funded) and BBC Worldwide, who are a commercial company that operates on a for-profit basis to use the BBC's archive to raise revenue to subsidise the licence fee - and also to make that archive content available, as since it charges or runs adverts around it's content it can pay rights holders (writers, actors, music labels etc) for the extra rights required from the takings - usually on a profit share basis).
This rumour is about BBC Worldwide, not the BBC (the BBC run iPlayer).
The idea is that with BBC programmes within the UK there will be a public/commercial split. The programme will be aired, available for free on iPlayer (and disappear because of iPlayer's DRM or when the stream is taken down). Then on that "eighth day" BBC Worldwide will take over the content, and they will sell it over their "Kangaroo" service (which other broadcasters are participating in). These will likely be paid for permanent downloads like most iTunes content, though BBC Worldwide have said they're exploring other methods (maybe things like a streaming service with adverts, like Hulu). I would imagine the price would be something like iTunes charges now, if not higher.
I doubt there'll be much consternation about this, despite what's said above - it's exactly the same situation as has happened with BBC DVD's and BBC videos for twenty years.
International BBC channels like BBC America are run by BBC Worldwide anyway, and always air programmes after the "eighth day". BBC Worldwide have said there will be some offering of programmes internationally via Kangaroo, but it won't be everything (the rights are too hard to organise, and it takes a lot of time), and it will also be charged for. I think it's very unlikely (given BBC America is a for profit channel, not a public service one) that there will be any free download window at all outside of the UK, though I suppose there could be some experiments with ads. It'll likely just be paid downloads from the start. Broadcast (the trade industry newspaper) carried a story last week that the international version was likely to be BBC America branded, at least initially, but would have more programmes than were available on that channel at least.
Recently the BBC have said now that Apple have a rental model on iTunes DRM they hope they can reach a deal for it to be used in the same way iPlayer operates within the UK (and it would be UK only if it was) - however, this is far from confirmed, and I'm not so sure it'll ever happen - Apple refused previously because they wanted a revenue share, and you can't take a share of nothing. Now that they don't have to modify Fairplay with timed expiry they might be a bit more willing, but no one knows. Certainly, I don’t think it'll happen for six months + if it does happen.
However, it is possible that BBC Worldwide are going to sell programmes on iTunes. Which is the rumour. They certainly could do, though I would be surprised if they offered it before Kangaroo launches myself, given that's the platform they're building. And since Kangaroo will be launched in the UK before it is internationally (by at least a few months) I'd be *double* surprised if any shows are available internationally through iTunes, at least at launch.
Phazer
TV. Service available for 'free' (paid for by TV licence) but to UK only and content expires 7 days after original broadcast.