YouTube is attempting to take on Apple and iTunes. The video-sharing website has been in talks with Warner Music and EMI and intends to offer music video downloads for free.
Analysts are suggesting that this could be the "nail in the coffin" and threaten the dominant position of iTunes, according to a report in the Guardian.
"If YouTube can convert its massive online popularity then it could provide a significant reason for people to buy non-iPod devices. [But] at the moment Apple is still the best bet for portable music watching," said Mark Mulligan, vice-president at JupiterResearch.