Tim Cook is speaking at the Goldman Sachs Technology and Internet Conference today, and he was pretty candid when asked about the living room and Apple TV: he said that the Apple TV is a "hobby" because the company knows the business isn't as big as the Mac or iOS devices, but that "Apple doesn't do hobbies as a general rule." Cook followed up by saying he "can't live without" his Apple TV, and that he's "always thought there was something there, and that if we kept following our intuition and kept pulling that string, we might find something larger."
What might Apple find? Cook didn't say, but he closed by saying that Apple needs "something that could go more main market for [the Apple TV] to be a serious category." That's certainly nothing definite, but it sure sounds like Apple's been thinking about how to turn the living room from a hobby into a real business.