According to AppleInsider, Munster suggests that the new Apple TV would be used to boost iTunes video purchases via a subscription model.
"Apple could leverage its deep library of content with many network and cable channel content owners to provide unlimited access to a sub-library of its TV shows for a standard monthly fee ($30 or $40 per month)," Munster writes. "Such a product would effectively replace a consumer's monthly cable bill (~$85/month) and offer access to current and older episodes of select shows on select channels."
Munster believes that the timing for this update is based on negotiations between Apple and the content providers.
The "Apple Television" is believed to be a long term goal for Apple. It could be released in the next two to five years and may have DVDR and media center functionality built in.
"The device would push apple further into the digital living room with interactive TV, music, movie and gaming features (with the iPhone or iPod touch as a game controller)," Munster states. "Such a device would command a premium among the competitive field of budget TVs."