I can't help but feel that this would be a really beneficial innovation in the way content is provided on the Internet. Every other video distribution site (except Netflix, whose online business model I still can't comprehend) has gone back to ads. Hulu+ is essentially Cable: the Revenge, but with more commercials than on-demand.<p>Being able to "subscribe" to a favorite show for $4 a month, in HD, without commercials, would be fantastic. I hope there's something to this rumor.
If it's based on iOS, it will probably have an App Store. People will want to make games for it, but infrared remote control input will make for frustrating controls. Is that what this thing is for? <a href="http://www.engadget.com/2010/06/07/apples-magic-trackpad-revealed/" rel="nofollow">http://www.engadget.com/2010/06/07/apples-magic-trackpad-rev...</a>
99 cents seems like a fair price to watch an ad-free episode of something. The old $1.99 price always seemed excessive, and I've never paid it for anything except Mad Men (I buy a season pass for thirty bucks and it saves me an entire year's cable subscription...)
This will drive casual viewing in the same way as 99p apps drove casual app purchases. DRM and various licensing issues have made this very difficult to achieve so far.