Video iPod

To the surprise of few, today Steve Jobs announced a Video iPod at his “One More Thing” press conference today. The main iPod now supports H.264 and MPEG-4 video formats, with a capacity of around 150 hours worth on the 60GB. You can also download movie trailers and purchase music videos at the iTunes Music Store for $1.99 each, and it looks like ad-free episodes of shows from ABC and Disney television are coming soon.

(As is traditional after Apple announcements (regardless of how good the news), AAPL is down five and a half percent so far today.)

Update 3:09pm: TV-show purchase is now up, with episodes for $1.99 and a full season for $34.99. And they’ve got Pixar shorts up for only $1.99 too! (Not sure if JHymn will work with video like it does with audio — I’ll try it out tonight.)