Jobs denies it. But then he would.
Arik Hesseldahl has an interesting article in the September 15th Business Week about the potential of a video iPod:
There were a lot of naysayers when Apple launched its music store, and indeed, many dismissed the first iPod. The same thing is true of digital video, which is about due for the same kind of bold shock to its collective consciousness that Apple delivered to the music industry when it launched iTunes in 2003. An iPod that plays home movies and downloads video podcasts might be a good start. And that would likely nudge the motion picture industry along. Soon enough, an online video store — complete with a digital rights management framework — would follow.
If Apple doesn’t do it, someone else will. But my money is on Apple — and Jobs.
Let’s see. Steve Jobs owns Pixar. He knows the power of the movie business. He further knows the love affair young people have with their favourite flicks. Can you imagine Napoleon Dynamite on the viPod? "Idiot."