The New York Times is reporting that Apple is working on a completely redesigned interface for the Apple TV.
According to their sources, it was not clear whether the company would create an entirely new product as well as update the software. They also said Apple might base a new television design on its iOS operating system, which is on the iPhone, iPad and iPod Touch.
One source tells the paper that Apple has recently hired several user interface and graphics designers that have a background in broadcast television.
Another source says that some of the more advanced work is not taking place within the Apple TV group but in another design group at the company. This is thought to signal a new product rather then an update to the existing one.
Engadget recently predicted a $99 AppleTV which streams from the cloud.