AOL and Intel will reportedly announce next week that owners of the Intel Viiv powered Media Center PC will soon be able to send downloaded video to their plasma screen or LCD TVs. Michael Kanellos, editor at large of News.com, cited unnamed sources close to the companies in his post on the news.

This is the logical next step in the world of big vendor movie downloads and AOL looks like they’ll beat Apple’s iTV to the punch. AOL Video already has some of the most extensive deals with movie studios of anyone in the video on demand space. Viiv owners will also be able to download and play music, according to Kanellos.

The Viiv is a combination of various hardware and software including DRM and a network card. Intel has entered into deals with a number of content providers to allow delivery of media through Viiv.