According to many online sources, Apple has been in talks with the major music labels about offering music video downloads through the iTunes Music Store for $1.99.

Also thrown in with that bit of news is the rumor that Apple plans to release a Video iPod by September.

Negotiations are an indication that Apple is moving to release a device that plays video files, possibly by September, The Journal said. Analysts see the development as likely because of Apple’s strength in video software, including the Quicktime movie format and video-editing software, such as Final Cut Pro and iMovie.

I really think that to have a successful video/movie download tool like iTunes, something will have to be done to handle the downloads better, possibly incorporating BitTorrent into the mix.