On October 12th, iTunes began selling roughly 2000 videos and episodes of popular ABC series like “Desperate Housewives” and “Lost” for $1.99. The sales of videos and episodes premiered in conjunction with Apple’s new digital music player that can also play videos on its 2.5-inch colored screen.

Technology, media and Wall Street analysts are keeping a close eye on Apple’s numbers to confirm that a market for video downloads exists. Videos by West, Michael Jackson, Fat Boy Slim and episodes of the aforementioned ABC shows generated the most downloads.

“Selling more than 1 million videos in 20 days strongly suggests there is a market for legal downloads,” Apple CEO Steve Jobs said in a statement. “Our next challenge is to broaden our content offerings.”

Word is Apple is in talks with other networks to bring in more television shows to its content.