Yahoo and Intel are ready to show of the latest prototypes for their family of internet-enabled TVs. The sets will feature an on-screen Widget Channel developed by Yahoo, allowing small applications to run on the set's processor and and deliver customizable content. The devices probably won't feature full keyboards, so interactivity will be limited, but the company listed potential widgets like social networking programs, photo galleries, and streaming video solutions for sites like Yahoo. Their won't be full-on web browsing, as user surveys apparently didn't identify that as a heavily desired feature.

The pair will license the technology to TV manufacturers, letting them build the experience into existing product lines. Intel's interested in the venture because it gives it an inroads for getting its chips into media hardware; while the Atom has helped the company get into the low-cost, low-power market, the company hasn't had much success getting manufacturers to use its chips in these kind of embedded systems.

While Yahoo said its first goal is making the user experience as positive as possible, it will concentrate on introducing advertisements at some point. The system should be open to other companies, not reliant on Yahoo as an ad broker. The latest demos of the project will be up at next week's CES.

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