Rumor: Apple Video iPod and Video-On-Demand Service Coming Soon

By Alexander Grundner | July 19th, 2005

With all the talk (WSJ, L.A. Times, CNET News Mercury News) of Apple developing video distribution through iTunes Music Store, and rumors of a possible Video iPod in September, I poked around and found that the most interesting (and creative) take on topic was by PBS’ Robert X. Cringely. Cringely suggests that Apple, Intel, and ClickStar (remember, that’s the DRMed video-on-demand company that actor Morgan Freeman and friends recently announced – with heavy investment from Intel) and partner OEMs are putting together a plan for home and on-the-go video content domination that is getting set to unfold.

“As I have written in previous columns, Apple is working on its own movie download service (HD movies at that!), and I believe that service and ClickStar are one in the same,” Cringely writes. “Good pricing is not enough reward for Steve Jobs kicking IBM in the corporate groin at the behest of Intel. Let’s guess, then, that not only will ClickStar morph into ITMS, but that Intel’s ‘digital home entertainment devices’ will be ITMS-compliant. No Microsoft, no Real, just H.264, FairPlay, and something behind Door Number Three… Get ready for the Video iPod, which will presumably be available from more than just Apple. HP is already on board and these clues suggest Intel is likely there, too.”

Cringely may definitely be on to something here. But in the near-term, Apple’s deals with Time Warner, EMI, Universal and Sony BMG to license music videos, and sell them for $1.99 a piece, is very much a reality that should be available in the next couple of months. As for TV show downloads, it may be while (a long while) due to licensing issues, unless the ClickStar rumors are true. However, ClickStar’s public business model doesn’t backup the rumors. “ClickStar’s strategy is to create an online service in which consumers can access, pay for and download first-run, pre-DVD-release films and artist-created entertainment channels in their homes,” so states the company’s press material. I guess we have to be patient and see how chips fall.