Apple is set to release a new version of the Apple TV, renamed iTV and powered by iOS this September, according to Digg's Kevin Rose.

Writing in his blog, Rose claims that Apple will create an iPhone/Pad like marketplace for television related apps including news apps. He also predicts games will be sold this way.

Rose also predicts that content producers will monetize their content via iAds, suggesting that the knock on effect of this is that production companies will not need to sell their work to TV channels to make a profit. "This will eventually destroy the television side of the cable and satellite industry, as your only requirement to access these on-demand stations will be an internet connection. Say goodbye to your monthly cable bill," he predicts.

Apple TV

He also predicts that iTV will receive notifications when shared iPhoto libraries are updated or if video is shared with friends and family.

Finally he predicts that the iPad will become the iTV remote control.