iPod to Support Digital Radio?

According to “a reliable industry insider,” the touchscreen iPod that Apple is expected to uncrate tomorrow will support digital radio. “The source said that the new iPods will be able to receive digital radio, and will include a ‘buy-now’ function to allow the user to download and buy tracks as they are being played,” Vnunet reports. “This facility will be limited to tracks sold from the iTunes store, but Apple hopes to dramatically increase the number of tracks available via the service.”

An interesting rumor, and one we’ve heard before. Back in 2004 word on the street had it that Apple had cut a deal with Sirius to offer an iPod with a built-in satellite radio receiver. But it hadn’t. And according to Sirius CEO Mel Karmazin, it probably never would, because the feeling at Apple was that “they don’t need to put a satellite radio in their box.”

Has Apple reconsidered its position in the ensuing years? It’s certainly possible. Remember Jobs once said “people don’t want to watch video on their iPod” too.