Wall Street Journal already claimed yesterday Apple is working on a new iPod with video functionality and new a blog claims Steve Jobs had talks with Disney's president to license Disney content for a new video iPod.
Steve Jobs has spoken with Disney President and soon-to-be CEO Bob Iger about ways to license various Disney content for a video iPod, according to an internal Disney email I have obtained. That could include anything from clips from ESPN and ABC News to short cartoons.
Jobs claimed there wouldn't be a market for these kind of devices but in the past he also claimed flash-based players are just a waste of time. And some time later the iPod shuffle appeared on the market. More info at OMB Blog