Airplay for Video?

Bloomberg reports that Apple is considering expanding Airplay to video, which would allow iOS devices to stream to connected TVs. As Darryl correctly points out, it could be a huge strategic move that would place Apple in the living room in a big way be enabling the huge installed base of iPhones and iPads to essentially act as small set-top boxes to play video. I don’t necessarily think it would hurt Apple TV sales, as there’s a large installed base of non web-connected digital TVs where Apple could position the Apple TV as the TV client to enable Airplay based video streaming.