Quoting "several people familiar with Apple’s television-related efforts," "The New York Times" (http://bits.blogs.nytimes.com/2010/07/02/apple-hopes-to-re-enter-the-liv...) says the company is working on an update to its Apple TV and software, and will offer a completely redesigned interface for it.

Said folks told the "Times" it's not clear whether Apple will create an entirely new product as well as update the software. They also said Apple might base a new television design on its iOS operating system, which is on the iPhone, iPad and iPod touch.

"Another person, who recently left Apple and was involved with the company’s television group, said some of the more advanced work on the next version of the TV is not taking place within the Apple TV group, but within another design group in the company -- this could signal an entirely new product," says the "The Times." "If Apple does use the iOS software, it would allow people to download applications like the Netflix app, which allows streaming movies and TV shows; ABC’s TV player; or Hulu’s latest video streaming application."