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Apple TV Shrinks, Goes All Rental and Streaming

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As expected, Apple made a big play to turn its Apple TV hobby into something more mainstream (and better monetized for the company) with a reboot of the Apple TV device. The gadget retains its name (no iTV), but it is shrunk in a number of ways.

Physically, it's smaller by about 80 percent from the original silver aluminum enclosure to an easily palm-able black box. And it also no longer houses a sizable hard drive to where you previously would sync your digital bits from iTunes and let sit there until ready for consumption. The new, deep black Apple TV is streaming only. And it not only hooks into TV and movie rentals from Apple's iTunes store, but it also hooks into streaming content from Netflix (as long as you're a subscriber).

I should have guessed something like this would happen since I recently just purchased a Roku HD-XR box primarily for streaming Netflix video (but also checking out content options from Amazon Video on Demand and other providers). And the Roku even got a price break (to $99.99) to match the Apple TV.

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Here's the skinny on the new Apple TV:

  • Streaming 99¢ HD TV show rentals from ABC, ABC Family, Fox, Disney Channel and BBC America (with more networks added down the line as their resolve crumbles).
  • Streaming movie rentals ($4.99 HD, $3.99 SD for new releases)
  • Full access your Netflix account, with the ability to browse and search, rate content, add to or remove from your queue, or instantly stream.
  • Same connectivity to YouTube, Flickr, and MobileMe plus Internet radio stations as with previous Apple TV.
  • Connects to iTunes on your Mac or PC for streaming content from the iTunes library (i.e., music, purchased videos, etc.).
  • HDMI and digital optical outputs.

Later this fall, Apple will also be rolling out its rejiggered AirTunes functionality, now called AirPlay, which will allow you to stream media content from an iOS device (i.e., iPhone, iPad, iPod touch) through the Apple TV and onto your HDTV. That will come with the iOS 4.2 update, which is expected in November and will be available for the full iOS lineup.

In other news, Kevin Rose (founder of Digg.com) is wrong once again with his Apple predictions, stating that the newly renamed iTV would run iOS and provide a marketplace for TV channel apps. Yeah... that didn't happen. But he got the price point right.

The new Apple TV is currently available for pre-order, with shipping expected by the end of September.

--Agen G.N. Schmitz

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