A radical departure from the 1st Generation AppleTV is everything you need packed in a 3.9 x 3.9 x 0.9 inch housing. Sans the hard drive found in the previous generation it is designed to be 80% cooler and more efficient. Now its even easier to rent movies and TV shows from iTunes as well as stream movies, shows, photos and other content from a Mac, PC, iPod, iPhone or iPad all at 720p; 1080p is not supported at this point. Also included is built-in support for Netflix, YouTube, Flickr and MobileMe streaming as well.

Also new is that is powered by the new Apple A4 chip and a variant of iOS although it does not run iOS applications. Connections on the back include HDMI, optical audio, 10/100Based-T Ethernet, Micro-USB port (presumed for service diagnostics or hacking) and 802.11a/b/gn wireless.

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