Apple Computer has been talking to music companies about licensing music videos to sell through the company's iTunes Music Store, a move seen as a prelude to a new generation of iPods that play videos, Monday's edition of The Wall Street Journal reported.

The videos, which could go on sale as early as September, would likely cost $1.99 each on iTunes according to the newspaper, with the possibility of a discount if consumers buy a music video and a song at the same time.

"Just over two years ago, we sold our first song,'' said Steve Jobs, Apple chief executive. "Yesterday, we sold our half billionth song. As we cross this major milestone, we couldn't be more excited about the future of digital music, iTunes and the iPod."

That future is understood to include a version of the iPod that can play music videos, offering the potential for products showing television programmes, home videos and movies.

If Apple's gamble on video content proves to be successful, it could create a significant new source of income for media companies that are rushing to distribute video content on the Internet to offset the growing number of pirated movies, television shows and other programming now distributed online according to the Journal report.

The company is understood to have held talks with all four major music groups - EMI, Warner Music, Sony BMG and Universal Music - about licensing music videos and to have approached other media groups concerning TV programmes.

Source: Xinhua/agencies