Apple is considering adding streaming video to its AirPlay service, which currently allows users to stream audio from an iPhone, iPad or iTunes to a home stereo or other devices. According to Bloomberg, two people familiar with the matter (who asked to remain anonymous) suggested the new feature would enable streaming video from an iPhone or iPad to television sets — and that Apple would license its software to CE manufacturers who could potentially use AirPlay in their devices for streaming movies, television and other video content.

Expanding AirPlay functionality could possibly spark more use of Apple devices and services in the home, despite the company’s limited success selling the $99 Apple TV set-top box thus far. Bloomberg reports that, “For Apple, AirPlay is a way to expand into the living room without having to introduce new products.”

While Apple and others such as Google are looking to explore the possibilities of streaming video and Web-connected televisions, a challenge for streaming content from a mobile device involves bandwidth issues and whether signals can be carried without interruption. Regardless of any technical obstacles, there is clearly a shift in how consumers are accessing TV shows and movies, with an increasing number of people accessing instant streaming services from the likes of Netflix and Hulu. Apple’s Steve Jobs — banking on a complete shift from physical media toward content distribution in digital form — has gone so far as barring Blu-ray players from Mac computers.

Baseball and basketball fans can now turn to the second-generation Apple TV for live and on-demand archived games streaming in HD.  The subscription service will cost $100/year for MLB.tv (spring training and regular season games and access to archived games).  A $120 premium version provides access to both home and away games.  Basketball games are accessible via the NBA League Pass Broadband service. The NBA service offers two options: a $65 version lets users follow up to seven teams throughout the regular season, while a $99 option provides games from all 30 teams.

Both services have blackouts based on the subscription’s registration address.

Access to the new services is enabled by the iOS for Apple TV 4.2 update, and will work similarly to Netflix. Users sign in via an account and password, and then access whatever content the subscription permits. Roku has offered similar MLB.tv access for some time and recently added NHL and UFC options. This could be what sports fans need to ditch traditional cable services.

In a related Wall Street Journal “All Things Digital” article (3/14/11), ESPN reports that only a tiny fraction of sports fans have cut the cable cord, a number that may be moot considering the equal number of fans who added cable and broadband access during the same period.