Apple has told the studios that under the plan, iTunes users will access video from various Internet-connected devices. Apple would of course prefer that users access video from the iPad, the company's upcoming tablet computer, the sources said. Apple spokesman Tom Neumayr said Apple doesn't comment on rumors or speculation.
Combine this with streaming music, and CNET's sources claim Apple wants to eliminate the need for local storage (hard drives, but also the far smaller, more expensive NAND Flash drives on iPhone, iPod touch, and iPad).
Studios haven't signed on yet, however, since they're worried they'll be locked into Apple's proprietary system. (Is that supposed to be funny, seeing how iTunes Music is now DRM-free and can play on anything, while Hollywood still insists on DRM and that's what makes iTunes locked in?)
The CECE consortium, Disney's KeyChest, and Google are all listed as competitors, but Apple's iPad might give them the edge if it takes off with consumers -- especially if it offers apps from "rivals" like Netflix, Hulu, etc.
In fact, that might just make Apple the best of all worlds. Now that would be funny, wouldn't it Hollywood?
The important thing, however, is consumers. In the wake of Sidekick outages, Playstation Network outages, RIM BlackBerry outages -- and of course MobileMe -- do we want to