As I said, it's not a proposal to extend Apple TV. Rather, Apple is presenting the offer as an extension of iTunes. iTunes already offers TV shows for purchase, but buying an episode at $2.99 a pop or a season pass at $40+, simply isn't a good option. A subscription model for all you could eat TV, now that would be a good option.
Obviously, there have been inroads in this sort of thing with both Hulu and Netflix. Apple has a ready-made and nearly captive audience with iTunes, though. Seriously, iTunes does have a large base of customers already.
However, content providers already work significantly with Apple and iTunes, and they haven't been exactly happy with the way Apple waves around its "sharp stick" (with all its market prowess). Would anyone sign on for this sort of deal?
According to MediaMemo, for now the answer is no. MediaMemo does say, however, that if anyone would jump first, it would be Disney, with its close ties to Apple CEO Steve Jobs. Apple would reportedly like to launch this in 2010.
Here's the thing: as I've said before, we have more companies pitching more content via our broadband connections. Yet we also have more companies pitching capped usage at us. You can't have it both ways.
Although, there's always heading down to the coffee shop to use some of the bandwidth, along with a cup of joe, I suppose.