Apple may have convinced some of the TV networks to lower their price on TV shows from $1.99 to $.99 per episode.
According to Ryan Lawler, the new $99 AppleTV that runs the iOS will feature the ability to buy and stream TV shows for $.99 each.
As for competition in the Cloud streaming field, Roku (HD player is $99 today only+$10 credit) sells a box that streams Netflix and Amazon TV and movies. Those TV shows are mostly the same price as those currently selling on iTunes. If iTunes drops prices on their shows, Netflix and Amazon would likely follow.