The Widget Channel will use Intel’s new Media Processor CE 3100 along with Yahoo’s Widget Engine to bring Web content to a television platform. The technology will essentially deliver a degree of Web 2.0-type service to the TV, letting you interact with content and share information with friends. It’ll also offer news headlines, photo access, and video-on-demand-style services.

Much of the content will be powered by established Internet services, including Flickr, Yahoo Sports, Yahoo Finance, eBay, and Blockbuster. A slew of other companies is working on new widgets, too — everyone from CBS Interactive to Disney, MTV, Samsung, and even Twitter.

Here’s the other interesting part: The whole platform is designed on open standards, so smaller developers will be able to get in on the action as well. Javascript, XML, HTML, and Adobe Flash will all be supported. As of now, the SDK is still in its early stages and is only being released on a limited basis.

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