Amazon in talks with Hollywood studios

That would be awesome. I'd definitely take that over Apple's extremely low quality video clips. It may be easier to buy through iTMS but with how low the quality is, you're almost guaranteed that you'll need to buy it again when the "real" video iPod comes out, or heaven forbid, play it on a TV.

Let me guess, and it will NOT play on iPod? You honestly think over 42 million users and growing are going to simply throw away the best digital player out there JUST BECAUSE Amazon (and whoever else) joins the game? Get real people and for heaven's sake THINK. First off, massive movie download will NEVER take off today simply because most people do NOT have the high speed and bandwidth necessary to take advantage of it. Second, why would anyone give up what has been proven to be hands down the best digital experience in the world (itunes and ipod). Third, the INSTANT Apple does this (and it has already started in case you've been living under a rock), all this competition is pretty much worthless.

As for AAPL investors, I suggest you seriously start thinking of stocking up.

This will, however, be of interest to NetFlix, Blockbuster, and the non-iTMS music stores as another joins the fray. Remember Sony?

iTMS has attained a loyal following with its music store, and it doesn't sell feature films, so Apple shouldn't be worried.

Let me guess, and it will NOT play on iPod? You honestly think over 42 million users and growing are going to simply throw away the best digital player out there JUST BECAUSE Amazon (and whoever else) joins the game?

You get real. Most iPod owners can't play video, so we'd have to throw our iPods away to play any video anyway (not that anyone really wants to view crap on iPods).

Oh, and I love how people think no one should compete with apple in any of these download markets. Like competition isn't good.

"Like competition isn't good."

If it's like the music stores and most other "competition", it's really not good. Prices and selection are the same (think gas, Best Buy/Circuit City, Wal-Mart/Target/Kmart) and there's really no incentive to shop at any one place.

What happens is that someone comes in and has lower prices to steal marketshare. Then they raise prices slowly (as profits are low) and prices are the same as everyone else....

Competition is nothing more than a feel good thing for us to think we get good prices and service. In fact, it really is not this great thing people make it out to be.