Apple 'already in talks' over video iTunes and iPod

Apple is getting ready to exploit the newly-introduced video capabilities in iTunes and is thought to be in talks with major record companies over the introduction of an iTunes store for music videos.

According to a report in the Wall Street Journal, Jobs and co have already approached execs from the big four record companies – EMI, Sony BMG, Universal and Warner - over licensing their catalogues for the video store, which would flog music videos for around $1.99 per song.

Apple told the executives that the video store may also be accompanied by a video iPod, also scheduled for release as early as this September.

The WSJ also reports that a number of media companies have also been approached about licensing TV shows.

While analysts have been sceptical about the potential popularity of watching longer pieces of content on small-screen devices, short-clip content has already caught the imagination of 3G phone owners and is predicted to grow more popular as higher-end handsets spread.