Apple rumor, iPod in the works that will play MPEG4 video files?

It is this service that drives the possibility of such a new
player being created. The triumph of iTunes has had a direct affect on
iPod sales, which, according to some sources, now accounts for one out of
every two MP3 players sold -- this despite the fact that the service is
only for Mac users right now. Surely, this success can be repeated with a
digital video portable.

This brings us to some other speculation. This fall
Apple plans to launch a version of iTunes for the much larger Windows
audience. There are already several companies in the process of retooling
their offerings in hopes of beating Apple to the punch. Rumor has it that
they'll get trumped when Apple premieres an online service for PCs that
also sells digital movies.

As with music sites, there are also pay for movie
services available like MovieLink, MovieFlix, MP4.com and LikeTelevision.
These sites have only had modest success to this point, though,
experiencing the same troubles that all of the pay for music sites did
before iTunes came along. Apple, in its drive to become a digital media
company, is certainly aware of this opportunity to take a huge piece of
this burgeoning market, too. The difference is they have the
advantage/confidence that comes with knowing they have already made it
work for music.

If Apple does indeed sell digital video files online,
they will no doubt want to have a matching player to capitalize on the
hardware end. One that will feed back and forth to the service in a
symbiotic relationship that will enhance both. Enter the iPod Movie
player.