100 bucks that the media format used for streaming (or whatever download method) is not Mac compatible (ie WMV).

I actually wouldn't mind seeing something like that for music CDs: the option to apply (some of) your iTunes album purchase towards having the disc sent to you.

So long as digital copies are hobbled by rights protection so that they can't be conveniently used, there's no point to discussing distribution. iTMS videos are cute, but they don't equal DVD quality, and thy're not portable, which means that long-term, they'll become essentially useless. DVD is not a secure format (for anyone aside from law-abiding US residents, anyway), and we can therefore transfer content into whatever format we choose. Of course, soon we'll have higher quality formats, but DVD is certainly adequate as open media for the next decade or so.

But Apple had better start moving. If they stick by their guns here, they will lose out.

Right now, Apple's stock is continuing to fall because invertors are worried about Google's video store, and that they might start a music store within the next 3 - 6 months.

And now, Amazon is starting a video service, with higher quality (though I don't know the prices).

Whatever Apple is planning to do, it better be soon!

It's possible that they should come out with something before they have another iPod. If these other services start to catch on, Apple will have to play catch-up.

If that happens, they lose control over negotiations, as well as the direction, and the standards.

"The retailer realized a move to digital video streams was necessary to help protect its Internet turf from industry "newbies" such as Apple."

How long has Amazon been offering downloadable Media to sync with the most popular media playing device in the world? How long have they been offering any downloadable media? WTF??? I don't get it, who's the noob?...Amazon was a book company that happened to start selling other stuff. They are a retailer of products. Google is a search engine, that has gotten their paws into other things. They are all "noobs".

Mark your Calenders folks, April 1st, Apple's Birthday! And the Day they put these "Apple killers" in their rightful places once and for all.

One more thing, just because Amazon leaks their news, doesn't mean Apple doesn't have something huge up their sleeve. Don't underestimate the Apple Machine.