CNN has the topic on their front page:
http://www.cnn.com/2009/TECH/02/06/internet.tv/index.html
The looming switch from Analog to Digital TV is causing people to think of alternatives and Internet TV is finally making its way into the mainstream spotlight.
Apple will have to catch up if they want to compete in this emerging field.
The only thing Apple would have to do is add free, ad-driven, content. The download would contain ads and you wouldn't be able to skip them.
Apple is more than capable of providing this. It's up to the studios if they want to make it available on AppleTV thus creating competition for their own online services.