UPDATED: Apple To Unveil iTV With Netflix-Watch LIVE 10AM PST!

At this morning’s exclusive music and media event, Apple is expected to announce a new Apple TV that will support Netflix streaming service, reports Bloomberg, corroborating rumors of an Apple iOS-based television that had surfaced earlier this year. Netflix is already available on Apple’s iPad, iPod Touch and iPhone.

According to unnamed sources close to the project, the new Apple iTV will include a smaller hard drive than version introduced in 2007 and will sell for $99. Sources also claim Apple is currently negotiating with all four major television broadcasters for an iTunes feature that will allow users to rent  shows at 99 cents for 48 hours. Users currently pay $1.99 to download and own shows from ABC, NBC, CBS, Fox and cable channels. Apple is hoping a rental service will make iTunes more competitive with the video streaming services at Amazon.com and Hulu.

Industry insiders have predicted that revamps of the iPod Touch and iTunes service will also be unveiled at this year’s annual event. The updated iPod Touch is said to closely resemble the new iPhone 4, with a high-def screen and front-facing camera. (Update: Hard Candy jumped the gun by releasing details for a case to accomodate the new design with camera before Apple made any official announcement.)

Think there’s any truth to the rumors? We’ll know today sometime after 10 AM PST…

UPDATED 6:45am PT - Apple to stream today’s press conference live online!

According to Apple’s press release:

Viewing requires either a Mac® running Safari® on Mac OS® X version 10.6 Snow Leopard®, an iPhone® or iPod touch® running iOS 3.0 or higher, or an iPad.

Mac users can access the live video on apple.com starting at 10am PST. Use this link to check if you can view the stream. For a complete list of system requirements, head over to Mac Rumors for the skinny.