If rumor is true - its a strategic content play, not hardware/software in my humble opinion. With regards music positioning its could be a smart move. (big music picture - beyond rap or hip hop). The same thing for Apple TV - a lot of future hires will feel like square pegs in a round hole.
With regards content carriage deals in the cable industry - 20 million plus (subs) is starting to look very interesting. The tide will turn - and quality content channels/providers will be eager for the distribution channel.