Interesting speculation here:

http://money.cnn.com/2006/04/26/technology/business2_browser0426/index.htm

Rumor has it that he's asking Sony and other studios to include iPod-ready versions of their movies on Blu-Ray releases. Disney, which has worked closely with Apple on video content in the past, is also in the Blu-Ray camp. Persuading Sony and Disney to add iPod support would greatly expand Apple's movie library from the one title it sells today

I thought that Blu-Ray was losing the battle.