Refreshed internals, lower price point possible.
Another TV Show Arrives... Microsoft Competition? [Updated]
NBC has also promised that new shows would be added along the way.
Meanwhile, there are reports that Microsoft is not taking Apple's success lightly and plans on launching a subscription-based [Movie]* download service. The service would presumably offer either unlimited downloads or one with a high limit for a flat monthly fee similar to Napster's present music subscription service.
* Update: Movie service, not TV.