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iTunes Movies... and New Media Device? [Updated]

Appleinsider reports that Apple is ready to introduce the iTunes Movie Store at the upcoming September 12th Media Event.

They expect that Jobs will announce that movies from at least one major studio will be available at $9.99/download with additional studios following. Appleinsider, however, also claims that Apple has been working on their next killer device. Instead of a video iPod device to drive movie sales, they believe a video streaming device is in the works:

Jobs many months ago commissioned an elite group of Apple engineers to get the ball rolling on an intuitive hardware solution that would more closely tie the company's digital media strategy to the living-room.
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Insiders can only presume the device will take up the form of a video-enabled version of Apple's existing AirPort Express wireless base station, which lets users stream their iTunes music tracks from their computers to their home stereo receivers. It also acts as a wireless 802.11 router and printing hub.


Details are scarce, and the rumor site also reports that the release could still be delayed.

Update: Apple officially sent out invitations to members of the press today. According to O'Reilly, the event will be held at Yerba Buena Center for the Arts Theater in San Francisco.