According to a Bloomberg report, Apple is finding it difficult to re-imagine TV. Content providers are scared to death that Apple will be successful in creating a better TV experience. The problem is that the cable companies are deeply involved with the content providers...recall that Comcast, as one example, owns a big chunk of NBC. The cable companies have decided to go down with their own ship; they are going to cling to the sixty year old analog cable model until their last customers swim away the S.S. TitanicCableCo.
I can't really figure out what Apple has in mind that hasn't already been done. I've already ditched cable TV, and am quite content with cheap Hulu and Netflix subscriptions. Why do I need to buy a box from Apple? It's not that hard to bookmark the Netflix site and click on something in my queue. This is one area where I don't Apple really can bring some fresh new user interface experience a la the iPod or the iPhone and win.