Traditional television is static. Here’s your list of channels, watch what you like. If you have a DVR, you can time shift your shows, record them to watch later. On-demand offers another level of time shifting and access to a library of content, some of which you have to pay for. DVR and On-demand extend the traditional TV model, making it a bit more dynamic.
Apple TV and its WatchESPN app take this one step further.
I found some hidden features of the WatchESPN app on Apple TV that make it the best overall tool for U.S. cable and satellite TV subscribers who want to absorb as much of the sites and sounds of World Cup without actually being there.
Apple TV offers flexibility that your traditional set top box does not offer. This is a bridge from the static world of traditional television to the dynamic world of the net. Subtle, perhaps, but I think this is just a taste of things to come. Good writeup.