Video iPod and iTunes 6 to compete with PSP’s UMD?

As expected, Apple used its “One More Thing..” keynote today to announce video capable iPods. The new iPod features a 2.5 inch 4:3 screen capable of playing H.264 and MPEG-4 video at 30fps. A little bit of digging on the Apple site shows that the new iPod has a 2-3 hour battery life whilst playing video, depending on whether you pick the 30GB or 60GB model.

Apple has also released iTunes 6, which features a new video content section. Currently there are 2,000 music videos available for download, as well as five TV series (including Lost and Desperate Housewives) from ABC and Disney. Music videos and TV episodes cost $1.99 each.

So what does this all mean for the PSP and the burgeoning popularity of its UMD movie format? Was our prediction that the Sony PSP was about to get pwnt by a video capable iPod correct? It’s early days yet, but it looks like Apple is trying to do the same thing for video as what it did for the music industry: by marketing, distributing and selling movies, TV episodes and music videos online.

There’s also the issue of users putting their own content onto their iPod/PSP. The PSP requires expensive Memory Stick Duo cards as well as a confusing array of software for getting videos in the right format for PSP playback. The hard drive in the new iPod means users won’t need to pay extra to store more videos, with iTunes 6 providing a simple method for users to store and organize their movies.

Whilst there aren’t actually any full length movies available for purchase in the new iTunes, it’s only a matter of time before Apple sorts out contracts with the popular studios. When that happens, the UMD will be like what the CD is to the iTunes Music Store; unnecessarily physical. With a video iPod on one side and a completely games focused Nintendo DS on the other, the Sony PSP is looking increasingly cornered.

[Update: Apple has posted a 7 stage process for getting your videos onto the new iPod with Quicktime 7 Pro. That’s a bit easier than the complete lack of instructions with the PSP now ain’t it?]