Ok if you check out the NY Time article today at: http://www.nytimes.com/2008/10/30/techno...

you will see that TIVO and Netflix are working together...makes all the sense in the world.

And now my speculation...Apple to buy TIVO/Netflix for 2-3 Billion dollars and make its own settop box incorporating the 4th LEG OF APPLES STOOL. That's right, Apple TV. If Apple gets serious here, I believe it could revolutionize the TV industry. It would be a powerhouse.

The only risk is the providers charging for high prices for higher bandwidth as this would be required for viewing HD movies, etc...and because cable providers are in competition (video on demand) with a Netflix, TIVO and Apple TV this is one major risk.

But with 4G coming and WiMAXX...this could be the start of turning AppleTV from a hobby today to serious venture. Now add Blu-Ray into this settop box and who wouldn't buy it...for say $500?

Home entertainment system is DONE for $500...and Apple reaps all the subscriptions/rentals/buying tv shows, etc..

And all for a 2-3 Billion dollar investment...Apple has almost 25 Billion in cash...risking 10% on it for a 4th leg of their stool seems like a prudent risk to me.