Apple will start selling downloads of feature-length WaltDisney titles that can play on any computer loaded with iTunes software as wellas the new 80GB iPod.
The company will offer features from Buena Vista, Pixar, Miramaxand Touchstone, priced at $12.99 in the first week and rising to $14.99 afterthat.
Speaking at a conference in San Francisco, Apple chief Steve Jobstold delegates that the bulk of Disney's library will be available for downloadfor $9.99 each, and added that the company will start selling games priced at$4.99.
The new iPods will cost $349 and boast bigger screens and more powerfulbatteries, which Jobs said would last up to six and a half hours.
Last weekend Amazon introduced its download service Unbox, whichwill offer features from every major US studio except Disney.
Amazon's feature downloads will cost between $3.99 and $14.99 andthe service will run on any PC that runs the Windows XP operating system andhas broadband access.
Unbox users willhave to download Amazon's proprietary video player in order to view thedownloads.