An analyst is predicting that Apple will soon partner with record companies to sell music videos over the Web.

Merrill Lynch analyst Steven Milunovich wrote: "The music industry doesn’t have an outlet to sell music videos and likely would cooperate with Apple. In addition, Netflix said that given Apple’s recent hiring and lease of space, the company has designs on subscription video of some kind. And Apple has expressed interest in high definition video."

He added: "Selling videos may be a precursor to a video iPod. We previously speculated that iPod video capability for short clips could be available by Christmas," writes iPodlounge.

Apple recently unveiled an update to iTunes that includes the ability to play QuickTime movies.