Rumors are raging again about Apple will revamp its Apple TV with iPhone-like size with no screen, 16GB of internal storage; unlimited cloud-based storage, running iPhone OS and capable of 1080P output when connected to your living room TV. The device would be priced at under $100 as reported by Engadget.
If the rumor is real, the device could yield a big change from the current $229 Apple TV with 160-gigabyte hard drive that only sends content from iTunes running on desktop.
The main question reside on contents. Since the box will be streaming from the cloud, one might think Apple could use technology from Lala acquisition to allow users to stream purchased/ rented contents from iTunes account on Apple servers instead of user desktop. However what is not compelling is contents are still confined within Apple ecosystem.
In contrast to that theory, Google TV is more open, since its allows users to search the entire Internet for contents as well as paid contents from multiple sources.
Both platforms still require source from cable providers for live TV and DVR function, question remain how seamless the integration would be for user experience and if networks allow these technologies giant to invade your living room without a fight.