Correction: Apple just sent out the invite with September 1st date, no details available

At the upcoming event on September 1st, Apple is expected to introduce the fourth generation of its iPod Touch, which features the same display, front and back cameras similar to the iPhone 4. The new iOS device will be able to perform pretty much all the functions available on the iPhone (except the phone feature) over WiFi, including Apple video chat service FaceTime.

But the star and the most anticipated announcement at the event  will be a new device, identified as “unknown” in the latest device table included in the iOS 4.1 beta. This new device would be the replacement of its three-year-old Apple TV, speculatively called iTV. iTV is a small set-top unit with the size of an iPhone minus the display, sporting a small hard drive, WiFi and possibly Bluetooth (to be paired with the new Apple Magic Trackpad for navigation)  

imageiTV is aimed at letting people stream media content from iTunes similar to its predecessor. As an iOS device, iTV lets publisher create apps to sell to users. iPad users can imagine a similar ABC app on a larger screen, the app lets users watch TV contents just with an Internet broadband connection, completely bypassing TV cable operator. Paid content providers such HBO could also operate that way to sell their programming via iTunes App and Apple and content providers could share revenue generated by Apple new iAds service.

As you can see, Apple could be in a very powerful position to supersede traditional ecosystem, however, In reality. TV Networks will not yet let Apple gain this position. Existing arrangements between TV networks and TV cable providers is an incremental multi-million dollar business, spanning over several years, so don’t expect Apple will break that lucrative deals, at least for now.

Bloomberg reports that Apple is working feverishly with TV networks to make available a TV content rental plan, which will charge user $.99 for 24hr to watch most demand TV shows. Unlike a subscription service, the rental plan is lass menacing to the existing ecosystem but it could pave the way to the future elimination of TV cable/ and satellite providers, if it turn out successful.   TV viewers would rather pay a-la-carte for their TV consumption, including on-demand feature, which is much desirable when compared to current bundle TV subscription + DVR renting.

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