Apple on Wednesday introduced a revamped $99 Apple TV that is a quarter of the size of previous versions, includes streaming movies from Netflix, and has 99-cent TV rentals from ABC and Fox.
Apple has done away with downloads in favor of a streaming model, chief executive Steve Jobs said. "There are no purchases on Apple TV anymore," he said.
First-run HD movies will cost $4.99 to rent on the day they are released on DVD, Jobs said.
TV show rentals, meanwhile, will cost 99 cents. Apple secured licensing deals with ABC and Fox, but other networks have not yet signed on. "We think the rest of the studios will see the light and get on board with us," Jobs said.
Apple TV will also stream Netflix's Watch Instantly library, and provide access to YouTube, Flickr, and video and photos from MobileMe.
"We couldn't be more pleased than to be in partnership with Apple to enable you to instantly watch movies and TV shows from Netflix on these groundbreaking devices," Bill Holmes vice president of business development for Netflix, wrote in a blog post. "Of course, we're continuing to work on more devices and platforms to reach our goal of being ubiquitous on every screen on which you'd want to watch movies and TV episodes streamed instantly from Netflix. The new Apple TV brings this goal even closer."
Available movies and TV shows, meanwhile, will include information about actors and directors, reviews from Rotten Tomatoes, and a "what others have rented" feature.
Jobs also showed off AirPlay, which will be available in November with iOS 4.2. It will allow users to stream content from any iOS device to an Apple TV. Start watching something on Apple TV in the living room, walk into another room, and pick it up on the iPad, he said.
The new Apple TV will be $99 and will be available later this month. Apple is accepting pre-orders today.
Also today, Apple revamped its iPod lineup, and unveiled iTunes 10, which includes a social component called Ping. For more details, see PCMag's live blog of the event on Gearlog.com, and read our hands on with Apple's new iPods, Apple TV, and iTunes 10.
Editor's Note: This story was updated at 6pm with comment from Netflix.