"Conversations between Apple and EMI are ongoing and we look forward to the day when we can make the music available digitally. But it's not tomorrow."

Looks like The Beatles Rock Band is still gonna be the only (legit) way to snag The Beatles catalog completely digitally, at least until someone kicks EMI in the ass hard enough to make it happen. [FT]

It's well known that the iTunes video store isn't the titanic market juggernaut the music store is—to wit, NBC can walk, but Universal Records stays, despite the fact it's the biggest label and has notoriously strained relations with Apple. It's clear from the new iPod line that Apple sees video as its next frontier. But they're simply not selling the volume of video they expect or want to.

On one level, the idea's fairly compelling: the video download market right now is primordial at best, and 99 cents a show is a hard bargain—even just considering production for a TV episode vs. a single track—that's bound to pull in eyeballs and pump iTunes sales, maybe enough to start to grab the first foothold in the market.

Which might be exactly why the networks would balk, clipping half their check aside. The contentious situation between record labels and iTunes is largely because of the iPod/iTunes grip on the digital music market. It's leverage Hollywood is clearly wary of granting anyone wiggle room toward. So we'll be more than surprised if this comes to pass, even over in Disney land. [Variety, thanks John]

The issue seems to be the same old, same old: NBC wants to bump prices and complicate the packaging/pricing structure, while Apple ostensibly wants to keep things the way they are: simple.

More than likely, NBC's going to pull a Universal music: no long-term contract, but short-term sales agreements to keep their content up. That way they can still make money while (maybe) maintaining some leverage for negotiation. There's still a few months left, so it's possible they'll come to an agreement, but greed makes for some strong fences. [NYT]

While the dust is still clearing from yesterday's All Things D (as in Digital, Damned, Drowsy, completely Delightful and even Dildonic at times), the best news for me has been Jobs' announcement that Apple is planning to open the Mac OS X Messiah-phone to developers. To achieve their need to balance security and openness, my guess is that they will follow more or less the iPod model: controlled distribution of Apple-certified, high-quality apps through a secure channel like the iTunes Music Store.

The question is: What current third-party Mac OS X applications would you like to see adapted to the iPhone? Which of them would actually reach a greater potential in the iPhone and become killer applications?

My wishlist and your own suggestions, after the jump.

Here are my Top 5 picks for the iPhone, according to coolness factor and personal preference.

5. ScummX. Pushing Guybrush Threepwood around with my finger? Aye aye, Sir! Monkey Island, Day of the Tentacle and the Indiana Jones series will work great with the iPhone touchscreen and resolution. That would be reason enough for me to buy one. And a three-headed monkey.

4. MacMAME. Like number 5, the Multi-Arcade Machine Emulator is the ultimate productivity enhancer. Hundreds of outstanding classic arcade games that will also work perfectly on the iPhone just adding simple on-screen controls. And you will be able to play Galaga and the original Donkey Kong vertically. Doesn't get any better than that. (I will also put here a Gameboy Advance, Nintendo DS, PlayStation and SNES emulator.)

3. Voice Candy. Brilliant voice processing application that will work great to record messages and leave voice mails. The interface is almost perfect for the iPhone as it is. Fun stuff.

2. Delicious Library. I guess Apple will integrate something similar to this amazing DVD/Book/Videogame database to make the iPhone work with the Apple TV and Front Row, but in the meantime, I want the Delicious Monsters to do their job.

1. Autodesk SketchBook Pro. Being a pixel-pusher, I would love to see an adaptation of this simple painting package. Thanks to Marking Menus, this one will work great on the iPhone and it will be really fun to play with. For some people, Autodesk should also sell a custom-made stylus (simulating the finger electrostatic charge) for even finer control.

I know that this is not representative of everyone, so please add your own suggestions in the comments and we will make a poll with all of them later. Except for Striptease Touch-me Poker. That doesn't require any poll. – Jesus Diaz

Well, two in, two to go: following up on yesterday's announcement, Sir Paul McCartney's new album Memory Almost Full is available now for pre-order exclusively in the iTunes Music Store. Macca's new album, a very personal work according to him, will be available for download on June 5.

Whatever. The truth is that Ringo already has something in the iTMS and quite frankly, to me he was the only one with true talent. Mixing Caipirinhas and making rollies at least. Ringo, we love you mate. – Jesus Diaz

At the same time, the free Washington Post video wonkcast is now offered up on the iTunes store in 720p. Sure, Apple has served up quite a few trailers in HD on its website, but could this be foreshadowing of 720p-ness to come on iTunes? Strangely enough, 720p needs to be down-rezzed to play back on an iPod. But 720p offerings give one more good reason to consider the Apple TV hardware, which after all, is capable of that lowest HD rez.

What will happen next?

Some have said Apple may announce something about this at the NAB (National Association of Broadcasters) convention next week, but that's more of a broadcasting equipment show than a content confab. Anyway, could happen. We'll be there to bring you the story firsthand. – Charlie White

HD video podcasts come to iTunes—and Apple TV [Crave and MacRumors]

Rather than focusing on kicking all the european RIAA-equivalents' butt, the useless European Union bureaucrats continue to spend money on pointless stuff, like pressuring Apple to open the iTunes Music Store's DRM system. At least according to EU Consumer Protection Commissioner Meglena Kuneva, who thinks that "something has to change".

"Do you think it's fine that a CD plays in all CD players but that an iTunes song only plays in an iPod? I don't. Something has to change"

Yes, something has to change, Meglena. Apart from your gigantic salary and wild EU expenses, you also need to get a clue and discover that 1) iTunes songs account for less than 3% of iPod owners music and 2) you can actually copy iTunes Music Store songs to other players and computers using plain CD burning or software available on the web. Maybe then you will do something worthy and hunt the big labels instead. – Jesus Diaz

EU's consumer chief takes aim at Apple over iTunes [Reuters]

Best of all, Warner also made the pilot episode for the Aquaman show. Aquaman here I come! $1.99, there you go! – Travis Hudson

Friends, Babylon 5, MADtv and the lost Aquaman Pilot now on iTunes [MacMerc]

The big music companies sure must hate the Fraunhofer Institute for creating the MP3 codec. As we all know, MP3s, burning CDs and, more recently, legal downloads have turned the industry on its head and caused executives to starve inside of their ivory towers. Over in the UK, Universal is trying to right this wretched wrong by doing something a little different: they're going to be offering simple, stripped down CDs at a price that's competitive with the iTunes Music Store. The catch? (Come on, it's the record companies—there has to be a catch.) You'll end up paying about the same, or even more, than what you would pay now for regular CDs. That's right: Universal's grand strategy to winning back your hearts is to offer stripped down CDs for the price of regular CDs, defined as CDs that come in jewel cases and have a full booklet. Great thinking, guys!

Universal's new CDs will retail for £7, or about $12.85. These CDs will come in a slip cover and come with no booklet. Right now, most retailers in the UK offer regular CDs for less than £7. So yes, you're paying more for less. Even better, these CDs are only going to be (initially, at least) offered for Universal's older, back-catalogue acts. So they're competing against iTunes by offering old acts on stripped down CDs and ignoring their current acts, more than likely the ones being downloaded most heavily. Makes sense.

These stripped down CDs will be rolled across the UK and Europe beginning in September. Along with the stripped down CDs, Universal will also offer CDs in two other packages: the aforementioned regular CD as well as a CD bundled with a DVD. Will it be enough to stem the tide of iTunes downloading, as Universal hopes? Time will tell, but you can probably hazard a guess as to the house's opinion. – Nicholas Deleon

Universal prices CDs to match downloads [Guardian Unlimited via The Register]

Audiophiles rejoice, because those rumors just might be true. In a private release of iTunes Producer 1.4, the application used by record companies to compress music for submission to the iTunes music store, the software is newly capable of encoding music using the Apple Lossless format. This is a really good thing, because heck, even with our addled ears, we don't much like the sound of Apple's Advanced Audio Coding (AAC) format. – Charlie White

Apple Lossless format coming to iTMS? [Apple Insider]

Kyle XY will make its debut on ABC Family four days later. Clear your schedules, folks. – Nicholas Deleon

ABC Family Sells 'Kyle XY' on iTunes [Multichannel News via iLounge]

Additionally, NBC announced that they'll be offering both iTunes-exclusive and non-exclusive programming to augment their iTMS presence. Viewers (or should they be called downloaders now?) will be able to watch great news-related shows like Time Capsule, where NBC talking head Brian Williams hosts episodes of past interviews with people such as President Kennedy. These programs cost $1.99 per episode, some of which are available right now, enabling you to get your daily General Electric-approved fix even from the office. – Nicholas Deleon

iTunes gets NHL Playoffs, exclusive NBC content [AppleInsider]

NBC offers variety of news in iTunes [USA Today/AP]

Proof That Apple is Definitely Planning a Video Store [Gear Live]
Apple to Make Major iPod Announcement in November [Gear Live]

Jobs 'super-excited' about iTunes for Japan [MacNN]
UPDATE - Plus the songs are 'spensive. About $1.35. Like the PS3!
Apple Launches Japanese iTunes Music Store [Designtechnica]

Regardless, it will be a very interesting time once a true VoD and iPod-branded piece of hardware hit the streets. Very interesting indeed.

Apple to expand video play? [News.com]

See also
The fall of Hollywood? [MarginalRevolution]