Published: March 7, 2005, 4:48 PM PST

By John Borland and Jim Hu

Staff Writer, CNET News.com

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Web giant Yahoo is poised to launch a new digital store and music player, aiming to compete more directly with Apple Computer`s successful iTunes service, according to sources familiar with the project.

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As MTV made the music video integral with music, I see the next level and what could possibly outmanuever the ipod as being a small handheld MP3 with video capability. It`s a natural, imo. Cell phones are now doing video and its just a matter of time. Why Apple hasn`t made the plunge is more likely tied to them continuing to leverage their enviable position before introducing a video version.

Yahoo has the ability to compete and looks to be about ready to do so.

Let`s hope KINO fits into that picture and that our Asian OEM/customer is introducing the 3.5`` screen Kino to the appropriate visionaries.