The Wall Street Journal is reporting that Walt Disney (that company, not the man) is in talks with Yahoo with a view to getting content from some of its networks embedded onto Yahoo Connected internet TVs.

At the moment Yahoo's web-TV widgets (which can be found on certain Samsung, Toshiba, Sony, LG and Vizio TVs) include apps such as Yahoo Weather, Yahoo News, Twitter, Flickr and eBay.

The move to bring content from the likes of ABC and ESPN would propel Yahoo into a much more competitive arena, of web video-on-demand, where the likes of Google and Apple now operate. Incidentally Disney has blocked Google TV from using its network's content in the US.

However, it isn't clear if the move could lead to mass content being available via Yahoo Connected TV, with the report suggesting it could simply mean clips and limited content from the networks.

Ron Jacoby, chief architect of Yahoo Connected TV, said Yahoo is working with networks in order to create "innovative applications, with video-on-demand being one aspect of that." 

"We're working with our network partners on a business model that works for networks and advertisers, not a model that deteriorates existing revenue streams," he said. "We think that's a big differentiator."

2011 is set to be a big year in terms of IPTV, with YouView set to go live and also a UK Google TV launch planned.