September 12, 2006 11:41 AM PDT

Apple forges path to digital living room

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Apple is also offering relatively fixed pricing, though new releases sell for more than older titles. Iger said he is perfectly comfortable with that notion and doesn't think that will prove to be an insurmountable hurdle for the rest of the industry. However, Disney is likely to team up with others. "It's nonexclusive," he said of the Apple deal. "We're platform-agnostic."

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Showtime for Apple
At event in S.F., it's all
about iPods and movies.

Jobs said that although the movies are a U.S. feature, the company hopes to offer films internationally next year. Iger said that Disney is already in talks with Apple on overseas distribution.

Both the video iPod and iPod Nano come with a search feature that lets users find songs, artists or television shows by entering letters into a search bar rather than scrolling through the familiar menus. They will also allow users to sync their music collections on home and work PCs through the iPod, so songs added at home and synced to the iPod will transfer to a work PC when that iPod is plugged into a USB port.

Jobs called the new 1GB iPod Shuffle "the world's smallest digital music player." It's about half the size of the original iPod Shuffle, uses the same aluminum casing as the new Nanos, and has a clip built onto the back. It costs $79.

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iTunes 7 for Mac
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The new iPod and the iPod Nanos are available immediately, and the iPod Shuffle will be available in October.

Version 7 of iTunes is also available for download immediately. The addition of movies to the content available for purchase was the most significant new feature, but the new version provides music videos at a higher resolution than before, now up to 640-by-480-pixel resolution. The screens on the new iPods and iPod Nanos support this resolution, which will also improve the quality of movies played on a Mac, PC or television.

The lineup of television shows available on the iTunes 7 store will also now include highlights of football games through a deal with the National Football League's NFL Network, Jobs said.

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