Microsoft is stepping up its game in the IPTV arena – they’ve revamped and re-branded their service as ‘Mediaroom’. The question now is which will be the first service to break into the big time? Will it be this or Joost or something we have yet to see? What are Apple’s plans for this field – are they just going to sit back and let the Apple TV become even more outgunned by Microsoft?

Reports a few days ago suggested that Joost was looking to partner up to embed their service in set-top boxes for a living room assault. Microsoft will no doubt include this Mediaroom platform in the Xbox 360 eventually so they’ll be right there in the living room in a big way as well. One would think Apple is at some point going to make a move to give the Apple TV IPTV functionality, but will the current boxes be able to utilize this or will that have to wait until the inevitable Apple TV 2.0?

If the latter situation is the case, Apple is going to have even more explaining to do to customers who jumped on the Apple TV bandwagon early. Not only would they have rolled out a 160GB version of the device just a couple of months after the initial 40GB version went on sale, but they would have released a much more useful version presumably just months after that. To me it still just seems like Apple is kind of coming up with the framework for what the Apple TV is supposed to be as they go along. Apple – please just make the Apple TV/Mac Mini hybrid that I’ve been talking about for a while now.

One way or another, IPTV is coming. With Microsoft clearly looking to make this a point of emphasis, you can expect the progression to start moving faster. Traditional cable services with their $100-plus-a-month bills may start feeling the heat in a matter of months – much like phone companies are now feeling the heat from services like VOIP and cellphones. Those “800” HD channels may not even be enough.