We have already seen hints at how Apple could be planning a metamorphsis for the Apple TV, and perhaps all of its media-rich products and even the iTunes Store itself, in recent reports and acquisitions. In December 2009, , a music-streaming startup that let users store their libraries on its servers and stream their music and playlists from any computer ( waiting in App Store approval limbo). Earlier this year, it was also discovered that in North Carolina. Translated: Apple acquired a company specializing in media-streaming technology, then started work on a reportedly "massive" new data center--that can't all be just to host .

On Friday, tech site stirred the anxious Apple TV pot by saying it had received information about a major upgrade to the device's hardware and how it works with the iTunes Store. In a nutshell, Engadget says the next Apple TV could be more of an "iPad for your TV," sporting a comparatively small amount of flash storage, support for 1080p video, and running on iPhone OS 4.0--essentially becoming a streaming hub for your iTunes Store content stored in the cloud.

But Apple is rapidly approaching a crossroads of the media and gadget industries. While competitors such as Netflix are enjoying success with streaming and subscription models for desktop computers and living room consoles, the iTunes Store got its pay-per-item name by letting customers download and enjoy their content anywhere, with or without an Internet connection, on a variety of desktop, laptop, and portable devices.

Let's set aside Engadget's tip (it is just an unsourced rumor at this point), and instead inspect the industry's tea leaves. It is becoming abundantly clear that a simple storage upgrade to the Apple TV will not satiate the new media consumer. In an age where video has become king, Apple needs to pave a unique highway ahead from these crossroads for its media services and devices, and especially the Apple TV.

Not everyone wants the responsibility of managing media or playlists, let alone maintaining rigorous hard drive backups for the inevitable rainy day. For the increasing number of consumers who want something even simpler than iTunes, Apple needs to introduce a streaming option into the figurative fabric of its iTunes and device ecosystem--open the store, find something you want, click to start listening or watching. Of course, The subscription plans that to studios could work in tandem for simplifying the iTunes experience.