As predicted Apple has launched a Video iPod to packed audiences in San Jose California and at the BBC in London. Silencing rumours that have been dogging the company for the past 18 months the company has launched a media player which it is calling the video iPod.

"It does everything that the previous model does and adds video as a bonus" said Steve Jobs, CEO of Apple.

Bonus would be the best way to describe it, as the new model however will still only offer a small screen compared to what people where hoping for and against its competitors, the Sony PSP and the Creative Zen Vision. The screen which is placed in the same position as previous models is only 2.5in (320x240pixels), smaller than most digital cameras launched on the market today.

The two new models will come in a 30Gb and 60Gb models. The 30Gb model is 31%thinner than the current 20Gb model and the 60Gb model will be 12% thinner.

As with the iPod Nano, Apple will be making a white and black version for people to buy. Prices in the states will be $299 for the 30Gb model and $399 for the 60Gb model.

Buyers keen to get the new models will be able to buy them in the US next week.