Wall Street Journal, which doesn't posts many rumours, claims Apple is negotiating with Warner, EMI Universal and Sony BMG to start selling music videos through its iTunes Music Store. The company apparently plans to start music videos for $1.99 each through its iTunes online music store.
There also seem to be talks with media companies to license TV shows to offer via iTunes. But this may take some longer as securing rights for TV shows, and maybe even films, is harder.
The current iPods don't support video so Apple might launch a new video iPod by September as well.
Steve Jobs said in the past that watching feature-length movies on portable devices with small screens would never be a big success. But Engadget