Just read this,
"...today would mark the beginning of movie sales via the iTunes Music Store (iTMS)...The new 2GB Nano will come only in silver and will cost $149, while the 4GB Nano will cost $199 and will come in every color but black. The premium 8GB model is retail for $249, and will be available in all colors. The new Nanos will feature a new charger, new armband, and a new lanyard...It was movies, of course. Jobs began by touching on the success of the TV show offerings on iTMS and how the service has grown from just 1 network and 5 shows to where it is now. Today, movies will become available on iTMS, starting with films from Walt Disney, Pixar, Touchstone, and Miramax...75 films will launch today, and more will come in every week and month. They will be encoded at 640x480, which is less than DVD quality, but will include Dolby surround sound audio. New releases will launch the same day as the DVD, and will sell for $12.99 in their first week and after that will bump to $14.99. Back catalog movies will mostly cost $9.99. Jobs noted that with a 5mb/s broadband connection, entire movies will take just 30 minutes to download. The service will launch today in the U.S., and "hopefully" in 2007 internationally. The same usage rights that apply to TV shows from iTMS will govern movie use, namely the inability to burn DVDs or watch the films on anything other than a computer or iPod without an A/V connection to a TV."
http://gear.ign.com/articles/732/732325p1.html
Looks like Apple is preparing for battle. The new ipods and their features/improvements sound cool, and the addition of TV and movies to 'itms' is a cool feature.
Let the battle begin.