The internet is full of speculation this morning about what Apple will announce tonight in a “Showtime” special:

Apple’s special “Showtime” special event on Tuesday will begin at 10 a.m. PT with the industry expecting Apple to launch its iTunes Movie Store with Disney as one of the few studios on board.

MacNN | Apple’s “Showtime” event [images]

HD for Indies predicts:

1.) No Airport Express A/V device as I’ve written about in the past today.

2.) A true iPod video will be announced, widescreen – be nice if it had video outputs.

3.) downloadable movies will be the size of the new screen, maybe 480 pixels wide

4.) Hence movies will be below DVD resolution

5.) Prices will be as rumored- $15 for new, $10 for older movies

6.) This is a sucky price/value proposition – you can buy DVDs for same or less, rip’em with Handbrake, and have a DVD AND a digital asset for iPod etc.

7.) LATER, maybe WWDC, they might intro the Airport Express A/V type device. It’d have a wireless router with audio and video outputs, you download a movie to your Mac or PC, it gets streamed or wire connection to the AE A/V which decodes the signal and sends to TV, remote control signals are passed from AE A/V back to computer to start/stop/play/browse/etc.

8.) 6-12 months after that, an HD version, using a higher speed wireless interface for streaming

9.) At each step along the way, the res of the available movies increases, the price stays the same, the older/smaller version either goes away or is available at a lower price (probably just goes away though).

10.) Disney/Pixar movies to start – you can buy’em. If other studios, more likely rental model for those. More will follow, same as iTunes Store was.

GOTTA KNOW ALL: Engadget promises live coverage.