The new Apple TV is substantially smaller than the current model, fits in the palm of a hand, and is priced at just US$99 - much less than the US$229 of the current model. The new device will now play movies and TV shows on rentals. Movies can be rented the same day the DVDs go on sale for US$4.99, and TV shows are available for 99 cents each.
"Our users want Hollywood movies and TV shows, cheaper; they don't want amateur hour," Steve Jobs said. "They don't want another computer. They don't want to manage storage. They want it to be silent, cool and small.
The new Apple TV would have the largest library of movies in the world available for rental on the first day of purchase. As for TV shows, Apple was able to strike a deal with Walt Disney's ABC and News Corp.'s Fox for TV shows.
"We think the rest of the studios will see the light and get on board pretty fast," Jobs said.
The new Apple TV will also be able to connect to users' Netflix accounts, YouTube, and Flickr. The device can link to users' home computers as well, so they can play their iTunes music and video libraries over Wi-Fi.