Update : It seems that Ms McMahon seriously misconstrued Apple's statement to her. We received a call from someone at Apple PR denying that Apple had confirmed anything, let alone a change of name, to the Mirror. Instead, they told the newspaper's journalist that they did not comment on unannounced products, or deny/confirm anything, which is the standard procedure when tackling this sort of situation.
Kate McMahon from UK newspaper the Mirror reports that an Apple spokesperson denied that the names iTV and ITV would be too similar therefore indirectly confirmed that Apple would be renaming its Apple TV set top box to Apple iTV.
ITV, UK's largest commercial television broadcaster, owns the trademark for the name in the UK and will apparently do whatever in their power to stop Apple from rebranding the Apple TV as iTV at least in the UK and possibly worldwide as well.
A source closed to the firm said told the Mirror that "You only have to look at recent problems with the iPhone 4 to see not everything Apple produces is gold dust. We all take our ITV brand very seriously and we’ll do everything in our power to protect it."
Apple could potentially look for a license to use the name just like the "Easy" or "Virgin" brands but this would mean having to bow to a foreign content company, something that would come with strings attached.
Engadget initially leaked out the name swap in an article which also stated that Apple would be moving away from Intel's x86 platform towards an ARM-based solution; Apple initially wanted to name the Apple TV as iTV but backed off for unknown reasons.