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.

As alternatives to traditional cable TV services continue to be introduced, the discourse grows regarding whether or not consumers are ready to “cut the cord.” Recent data from ESPN and research firm SNL Kagan suggests that any cable subscriber losses are being offset by gains elsewhere. However, as a percentage, fewer households are subscribing to cable than in the previous year. And financial services firm Stifel Nicolaus recently reported that pay TV might not be making a comeback over the longer term. The research report indicates year-over-year subscriber growth was at a mere 0.3 percent during 2010 — “the lowest year-over-year growth on record.”

According to Stifel Nicolaus analyst Christopher King: “Cable operators have been quick to point to housing and the anniversary of the nationwide digital transition in 2009 as reasons for recent subscriber declines; however, our analysis suggests that growth in the pay TV market has underperformed household formation in recent quarters and the impact of the 2009 digital transition should no longer be an issue.”

The pay TV market is over-saturated (at more than 84 percent of households), and while many continue to blame the state of the economy and the saturation on the declining numbers, it is interesting to note that Netflix added 6.4 million subscribers during 2010. As the cost of pay TV subscriptions continue to rise, consumers are beginning to “further re-evaluate the value they place on traditional pay TV services which bodes well for the likes of Netflix, Amazon and Apple TV among others,” King wrote in the report.

Editor’s Note: For those interested, the GigaOM post “Cord Cutting Threat Ain’t Over Yet” features some very interesting charts including Pay TV Subscriber Growth 3Q09-4Q10, Pay TV Penetration 4Q06-4Q10, and Netflix Subscriber Growth 2010 (as compared to Pay TV).

IntoNow is a new iOS app that identifies and tags live TV shows in realtime, creating something similar to Shazam, but for television rather than radio. Users press a button on the app interface while viewing a television program and, with the aid of a platform called SoundPrint, the app uses the program’s audio for identification within 4-12 seconds. The results appear on the iPhone or iPad screen and can be shared via social networking entities such as Facebook or Twitter, or can be added to a Netflix queue.

Engadget has a video demo where the user is watching CNN on a laptop (place-shifted via SlingBox), and uses the IntoNow app on an iPad to identify the TV stream. Based on the sharing features, users can also see what their friends are watching, check out program info for selected shows, and even leave comments. Social interaction is taken to the next level with push notifications in which the app lets users know when their friends are viewing the same content.

This is yet another step toward media content sharing that may significantly impact consumer viewing habits. Engadget reports that the initial launch is iOS only, but the company has plans to tackle other platforms such as Android.

Related Forbes article/review: “IntoNow Just Foursquared TV. Can It Groupon Its Commercials?” (3/25/11)