MSNBC and the Wall Street Journal report that Apple is in talks with major labels to license music videos for sale through the iTunes Music Store:

Apple has approached the four major music companies, Warner Music Group Corp., EMI Group PLC, Vivendi Universal SA's Universal Music Group and Sony BMG, a joint venture between Sony Corp. and Bertelsmann AG, to license music videos for sale through iTunes, according to people in the media industry. The videos, which could go on sale as early as September, would likely be sold for $1.99 each, with the possibility of a discount if consumers buy a music video and a song at the same time.

What's more, a followup story at the Wall Street Journal suggests that Apple may have more than music videos in mind for its video iPod:

Steve Jobs has spoken with Disney President and soon-to-be CEO Bob Iger about ways to license various Disney content for a video iPod, according to an internal Disney email I have obtained. That could include anything from clips from ESPN and ABC News to short cartoons.

...and that the new unit won't be without...particular competition:

If the past is any measure of what?s to come, Jobs will enter the arena late (as he did with the iPod) only to leapfrog over the competition with some entirely different device. And that could leave everyone from Microsoft?s Bill Gates to Sony?s Howard Stringer once again racing to copy their far smaller rival.

The buzz surrounding the family member that will take the iPod to the next generation has never been at such a fevered pitch. With rumors of music videos being sold through the iTunes Music Store as early as September, could a video iPod be just weeks away?