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I'm not sure where this is going to compete. I can get network TV shows (for free) on demand from my cable provider. I can get Netflix on a wide variety of devices already, such as the Wii that is already connected to my TV. Modern PCs have HDMI ports for video, connecting a PC to a TV is no longer a big deal if you want to go that route. Blu ray players have Netflix built in, Tivo has it, there are competing devices (with storage) from Roku and others, and even TVs have Netflix built into them. What content is Apple TV going to offer that I can't get on any of these other devices to make it compelling? Even my in-laws, who are as tech-phobic as it gets, can manage to watch Netflix on a Wii.
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