Apple continues to stress it has no plans to introduce a video iPod.

A Reuters report returns to the topical question, warning that even if the company had such plans brokering deals with the movie moguls would take time and cost money. It also says scant demand for such products exists.

Portable products that play movies already exist GartnerG2 analyst Mike McGuire said: "There’s already a whole bunch of perfectly capable devices out there that can play movies – and they're called notebook computers."

While products to serve the potential market are coming to market, Apple retains its focus on music. And the company's ability to deliver a legal music download service that has captured the hearts of many consumers was only part of the battle: music labels desperately needed a legal service that did just that. Movie studios don't yet face the same level of copyright theft, so are less likely to seek such agreement, the report states.

"Apple has good equity built up around the iPod brand," McGuire said. "It has to be careful about turning it into this digital-media Swiss Army knife that does a lot of things but none of them very well."

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