Jupiter Research analyst Michael Gartenberg has posted in his weblog that the real reason why Apple is slow to bringing a video iPod to market is because of legality.
“No company wants to get into that legal issue with the studios and provide those tools. Not Apple. Not Microsoft. In fact, the reason MediaCenter Extenders won’t stream DVDs from your MCE to the device is that in order to do so they need to be decrypted to send the stream. That’s illegal too.”
In his conclusion Gartenberg writes: “There’s no market for the video iPod for Apple’s customers at the moment. It’s just not a good move for Apple without the sources of content they need. They will be there and we will get a video iPod one day. Just not this one.”
What we do not completely understand is how media players like Archos Gimini and iRivers PMP-120 get around this loophole and still allow us to play movies over their players. Ok, well maybe we understand how, and ethics definately seem to play a role. Our guess is that Apple is in fact working on a video iPod but Steve Jobs probably wants a way to capitalize on the movie downloads the same way they are making money with iTunes.