Ronald Grover and Peter Burrows reporting for Bloomberg:

Apple Inc., preparing to announce a new set-top box that delivers video to consumers’ TVs, will include programming from Netflix Inc., according to three people with knowledge of the plans.

The big question remaining is whether Netflix streaming will be built into the OS or if it will be an app?

But for those who aren’t Netflix subscribers, the Wall Street Journal’s Shira Ovide reports that ABC and Fox are on deck to offer 99-cent TV show rentals through iTunes.

I guess 99-cent rentals from two major networks is better than none but this isn’t going to make me go all-in on iTunes quite yet. Add NBC, CBS, and a few major cable networks to the list and I’ll get really interested.

Another bit worthy of note regarding tomorrow’s Apple event is that Apple will be live streaming it on their website using HTTP Live Streaming. You’ll be able to watch the event live on either a Mac running Safari on Snow Leopard, an iPhone, iPod touch, or an iPad. My initial reaction to this announcement is that there is no reason for Apple to deal with the headache of live streaming for any reason other than to show off the technology that will be used to stream TV shows and movies through iTunes.