Well, well. The unlikely partnership between the leader in downloadable audio and video content -- Apple's iTunes -- and the nation's largest DVD seller -- Wal-Mart -- may be forming soon. Although both companies have probably thought that they both were threats to each other, it only seemed natural, I guess, that the world's largest retailer and the world's largest seller of portable digital media players join forces at some point.

Under the rumored deal, Wal-Mart could actually profit from downloads of iTunes movies (and music/TV shows possibly?) by having "digital download coupons" available in Wal-Mart stores that customers would then use to purchase media at the Apple iTunes store. The coupon tracking code would then generate a sliver of profit for the retailer every time a digital download coupon was used.

This not only further entrenches Apple's digital media tentacles into over 3,000 retail stores here in the U.S. alone (talk about a distribution partner), it allows Wal-Mart to receive a chunk of profit as Apple's largest distribution partner, which hopefully quashes the animosity the two companies have over who will win over consumers with movies and other media. Apple aims to be the top digital dog in virtual movie downloads, while Wal-Mart probably does not want to give up its crown as the 40% marketshare leader for physical DVD sales here in the U.S. -- and I doubt the movie studios want to see Wal-Mart lose that crown, either.

When industries collide, it's like a supernova sometimes. We may all be seeing the first pulls at old media versus digital media with the insane popularity of Apple's iPod music/video player and companies that love to sell loss-leaders like DVDs just to get shoppers in the stores where they will most likely buy more than just a DVD or two.

One such battle is happening between two unlikely adversaries, Apple and Wal-Mart. The world's largest retailer is upset that Apple plans on making full-length movies available for download via its online iTunes service. With Wal-Mart being accountable for 40% of the $17 billion-a-year DVD industry, it is understandable that the retailer is a little miffed at Steve Jobs and Co.

This is a classic example of one industry that won't quickly adapt to customer requests, although I'm not sure Apple is bowing to customer requests for downloadable full-length movies more than trying to get customers to its iTunes store with its intelligent marketing -- and it's a brand master extraordinaire. Regardless, if Apple does its usual bang-up job of creating cool and inspiring products, the customers will come, much to the dismay of the physical DVD hawkers, of which Wal-Mart is the biggest.

Instead of griping and trying to be protective of an industry that becomes less relevant as more media is consumed in an all-digital format, should Wal-Mart take a stab at actually competing with Apple and offer movie downloads (and heck, an entire media ecosystem if it really wants to compete)? If so, this would be an interesting move for a retailer -- not a hardware or software manufacturer.

Steve Jobs still has a ways to go to sign up studios to agree to have movies downloadable over iTunes. But the sheer numbers of iPod and iTunes users worldwide must be a big part of the decision-making process. Apple in this corner, Wal-Mart in that corner -- let's get ready to rumble!

I've pointed out that Apple's ability to negotiate with movie industry executives to be able to allow iTunes Music Store to carry videos will be key in Apple's plans to continue making the iPod the hippest media device around. Macminute points out an article that confirms that Lions Gate Entertainment has plans to offer movies through iTunes, as well as MovieLink and Cinema Now, and this will happen before the end of the year. At that point, will we see a name change? ITMS could go from iTunes Music Store to iTunes Media Store.

This places the iPod in a crucial place. The iPod is the storage center for an increasing ecosphere of iPod-enabled objects. From cars to computers to soon TVs, putting Apple at the top of pyramid of media devices. There is no resting on laurels here, the moment someone stops someone else can step up. We saw this happen when Apple snapped the lead away from Creative.

There are some less-than-positive pieces to this piece of good news for Apple. Unlike with the music offerings, Apple doesn't have exclusivity in its movie offerings, so customers will have a wide variety of services to choose to try. This works in the customers' favor, but Apple won't have the easy edge it snagged before. Secondly, Apple is supposedly choosing a rental approach for the movies.

I think the second issues will have the greatest impact. Are customers ready to pay but not get to keep the media around? Certainly in the past online customers haven't seemed too excited about the idea of this, can even Apple's hype change the average consumers mind? It will probably depend on the price.

Tobias Buckell is a freelance blogger, futurist, and author who grew up in the Caribbean. He owns shares in Apple.

Apple just cannot get any love from Europe at all, and the whole situation smacks to me of "farce." Recently, European regulators put their collective feet down on the notion that Apple must make its iPod music and video player work with other music services outside the iTunes music store. Hello -- the iPod can play the oldest format in the book, MP3. What I see here is that European governments (France) are being dictator-ish by telling a company what it can and cannot do with its products. If consumers love the product and there is no harm being done, what the heck do regulators have to do with it?

Well, now Scandinavia says that a Swedish law prohibits iTunes downloads from *only* being played on iPod units. What I don't get here is this: a company, say Apple, wants to make an integrated system of software and hardware that work great together for consumers, and the design locks out all other standards (pretty much) that would no doubt convolute the entire product relationship and, most likely, would create a very sub-optimal user experience.

This is why Apple keeps tight control over the "ecosystem" of its products -- in my opinion, to guarantee the best possible user experience. Judging by iPod sales and marketshare, there is probably no argument that says Apple has not created just that. Maybe Apple should just abandon sales in European countries that have such ridiculous laws? Nah -- too many sales lost probably.

Brian White has worked in various executive positions in technology and telecommunications and now focuses on editing and writing.