Coming: Videos to Your IPod

Apple negotiates for the rights to music videos as iTunes tops 500 million downloads. Verizon cuts deal to sell EA games.... TiVo offers customers opt-in advertising.

An iPod with video? Apple Computer has been talking to several major recording companies, looking to license the sale of music videos through the popular iTunes music service, The Wall Street Journal reported.

Negotiations are an indication that Apple is moving to release a device that plays video files, possibly by September, the Journal said. Analysts see the development as likely because of Apple's strength in video software, including the QuickTime movie format and video-editing software such as Final Cut Pro and iMovie.

An Apple spokeswoman declined to comment.

The Journal notes that so far, commercial movie download services have not met with much success, nor have devices already on the market allowing users to transfer video files from their PCs.

Meanwhile, Apple (AAPL) said Monday that iTunes has surpassed 500 million downloads since its inception two years ago.

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On Verizon's horizon: Verizon Wireless, the second-largest U.S. mobile provider, will sell video games from Electronic Arts to its customers in coming weeks, the companies said Monday.

Verizon (VZ) said it would provide games, including Madden NFL 06, Tiger Woods PGA Tour and NBA Live 06, to customers of its V Cast high-speed data service.

Mobile-phone gaming is one of the fastest-growing segments of the video-game industry, and service providers are embracing wireless game downloads as an additional source of revenue.

Top video-game provider Electronic Arts (ERTS) said in May it planned to launch 15 to 20 games for mobile phones this year, with expectations of up to $25 million in revenue.

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Opt-in ads: TiVo has upgraded its television recording service to let about 1 million of its subscribers instantly respond to specially coded advertising, the company said.

TiVo (TIVO) has offered long-form commercials that are downloaded discretely to its set-top boxes for viewers to view once they click over to a special area, or "opt-in."

The new system creates an option for viewers who want to know more about a product to tell TiVo to release their contact information to an advertiser.

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AP and Reuters contributed to this report.