Apple Unveils Video iPod

New version of device holds 150 hours of video.

If you were holding your breath for that pink Madonna-branded iPod, sorry, Apple has other plans in mind.

The company's CEO put an end to weeks of rampant speculation about what it's next big product would be with the unveiling Wednesday (October 12) of a device Apple is calling an iPod that is "music to your eyes."

The new 30 GB ($299) and 60 GB ($399) "Video" iPods, available in white or black, hold up to 150 hours of video, 15,000 songs or 25,000 photos. The device is lighter and thinner than comparable iPods, has five more hours of battery life and features a 2.5-inch color display, a full half-inch bigger than older versions.

Because you need something to play on that new iPod, the iTunes music store will now offer more than 2,000 music videos from stars such as Madonna and U2 and TV shows from ABC and parent company Disney like "Lost," "Desperate Housewives" and "That's So Raven." The videos are $1.99 each and will be augmented by six short movies from Pixar at the same price. The TV shows can be bought the day after they are broadcast and don't feature ads, with each hour-long show taking up about as much space as five CDs. The new video iPod will also be able to play video podcasts and home movies. The videos can be played on up to five computers.

"It's never been done before, where you could buy hit TV shows and buy them online the day after they're shown," said Apple CEO Steve Jobs.

iTunes has also added some new features, including gifting, which allows you to buy songs for someone else; customer reviews and a new feature called "Just for You," in which iTunes makes personalized recommendations based on your previous purchases.

With an optional audio cable, you can play tunes from the iPod on your stereo or mix videos on your TV. For now, the company did not announce any partnerships that would allow for the legal downloading of full-length movies.

For complete digital music coverage, check out the Digital Music Reports.