iTunes 4.8 was released this week, and it includes something quite interesting. If you buy certain albums – such as the new Gorillaz album – from the US music store, you get videos too. Previously you could watch videos in iTunes, but you couldn’t download them.

Is Apple dipping a toe in the water of digital movie distribution? It certainly looks like it… video iPod, anyone?

Update, 1am

Don’t hold your breath: LifeHacker reports…

An anonymous Apple employee and Slashdot poster says, “Everybody’s wrong about the video iPod thing. A video iPod would be a dumb idea for lots of reasons, some technical, some psychological. If you want to know where we’re going with video playback, look not to the iPod but to its considerably less famous little brother, AirPort Express.”