According to NewTeeVee Apple is working on bringing cloud based TV show rentals to Apple TV. You’d be able to rent a single episode of a show for 99-cents, as opposed to purchasing for $1.99 standard def, or $2.99 hi def. Instead of downloading the show, it would instead be streamed over the cloud to you.
It would function in a similar way to iTunes movie rentals: after paying, you have 30 days to start watching the show, and then 24 hours to finish it.
This rumor of the $1 rentals is something we’ve seen again and again and again. However, they’ve never had the same luck with TV creators as they did with Music. Right now, they also have to battle the spectre of Hulu and Netflix On Demand.