Merrill Lynch offers possibilities for iTunes video | iLounge News

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Merrill Lynch offers possibilities for iTunes video

With the recent addition of video support in iTunes, Apple is in good shape to partner with record companies to sell music videos or to offer a subscription video service, according to one Wall Street analyst.

“The music industry doesn’t have an outlet to sell music videos and likely would cooperate with Apple,” Milunovich said in a research note obtained by iLounge. “In addition, Netflix said that given Apple’s recent hiring and lease of space, the company has designs on subscription video of some kind. And Apple has expressed interest in high definition video.”

Like many others, the analyst said the videos could hint at a video iPod. “Selling videos may be a precursor to a video iPod,” Milunovich said. “The new features within iTunes allow users to download full versions of Quicktime music videos. We previously speculated that iPod video capability for short clips could be available by Christmas.”

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