Apple set to unveil large-screen ipods for movies

Apple Computer may begin selling full-length Walt Disney films online and introduce a new iPod on which to play them. Chief executive officer Steve Jobs will say at a meeting in San Francisco that Apple’s iTunes store is adding downloadable Disney movies to its music and television shows, said three officials familiar with the plan.

Mr Jobs also may introduce an iPod with a larger screen and more memory to accommodate movies, said analysts including Eugene Munster of Piper Jaffray & Cos.

Mr Jobs is attempting to duplicate with movies the success that made iTunes the most popular online music store and the iPod the top-selling digital player. He faces stronger competition this time, as Time Warner’s AOL unit and Web retailer Amazon.com Inc have signed up studios to offer movies online. Microsoft Corp plans to release a competitor to iPod this year.

“It's going to be a long horserace, and we’re barely a few feet out of the gate,” said Russ Crupnick, an analyst at NPD Group in Port Washington, New York. “I don't think anybody is at a disadvantage today.”

Apple spokesman Tom Neumayr declined to comment, as did David Caouette, a spokesman for Burbank, California-based Disney. Apple had last week sent analysts and reporters invitations showing the company’s logo bathed in klieg lights like those seen at movie premieres.

AOL on August 24 agreed to offer movies online from studios including Sony Corp, News Corp’s 20th Century Fox and General Electric’s Universal Studios, charging $9.99 to $19.99.