The eight-year-old iPod has revolutionized how a growing number of Americans consume music and has now moved from competitive threat to distribution platform.  The new iPod nano will feature an FM radio.  Emmis CEO Jeff Smulyan calls it a "major step” and could help radio convince mobile companies to include FM on cell phones.

Smulyan has been leading radio’s drive to get on new devices, including the iPod.  Whatever it was that led Apple to finally embrace radio remains a mystery. But Smulyan tells Inside Radio the decision will help the industry convince mobile phone carriers to follow the lead of Apple and Microsoft — whose new Zune HD includes HD Radio.  Smulyan says, “We do see some progress on all fronts," he says.  Just a handful of cell phones currently feature built-in FM radios, but there are reports the Apple iPhone already includes an FM receiver.  Broadcasters are pushing cell phone companies to include radio to meet federal requirements that new phones include emergency alert functions.

RAB president/CEO Jeff Haley, who has championed the “Radio Heard Here” effort, says Apple’s announcement confirms the dominant listening position that local broadcast radio holds.  “Apple clearly recognizes that radio remains the number one source for new music acquisition,” he adds.

The new iPod nano will feature an FM radio with live pause and iTunes Tagging.  Apple CEO Steve Jobs boasts that — despite a larger 2.2-inch color display — it’s “the thinnest iPod ever made.”  The new device comes in nine different colors. The 8GB model will sell for $149.  A 16GB model retails for $179.