Microsoft, AP Team on Online Video Venture - Yahoo! News
This is an interesting volley across Apple's bow. Microsoft is not much of a hardware company, but with the video iPod I could see this as a step toward teaming up with a company to offer some kind of iTunes/Disney thing.
As I said before, the video iPod makes video on demand (VOD) a new game. We not only need to shift time but location as well. Streaming is only 1 way in which we are going to want to get videos. In the future if you want to remain competitive you are going to have to offer some way to make things mobile, and on a variety of devices. Digital rights management (DRM) is going to have to get used to that as well.