Time is actually on Apple's side here. As time goes on, more and more cable providers and cable channels are offering app access to their content (i.e., Disney, HBO, FiOS, etc). So Apple doesn't really need to figure out the content angle, as most people can get what they want through apps from the content provider directly. They wouldn't even need a cable box, as the apps can access encrypted content. If they want something that they can't get because they don't subscribe to that service, they can buy it from iTunes. Between iTunes and Netflix, most people's content needs are filled.
The way Apple can make a big splash would be to mainstream 4K TVs. We are a solid year away from the point that a 4K TV can come to market at a reasonable (albeit premium) price. I predict a large 4K AppleTV in early 2015. By that time, Netflix will be streaming 4K regularly, and Apple can match that in iTunes. Tie in all the other apps into a nice user interface (the Apple specialty), and you have a winning product.
The way Apple can make a big splash would be to mainstream 4K TVs. We are a solid year away from the point that a 4K TV can come to market at a reasonable (albeit premium) price. I predict a large 4K AppleTV in early 2015. By that time, Netflix will be streaming 4K regularly, and Apple can match that in iTunes. Tie in all the other apps into a nice user interface (the Apple specialty), and you have a winning product.