Acknowledging that the Apple TV has “never been a big hit,” CEO Steve Jobs has introduced the latest and greatest version of the living room device, bringing more of Hollywood movies and TV shows in HD to your home theatre.

Claiming that people who own them love their Apple TV, Steve Jobs laid out a list of what those buyers want from their boxes: Hollywood movies and TV shows in HD, lower prices for content and no syncing with a computer, not to mention silent, cool and small.

And small it is! The new Apple TV is 25 percent the size of the previous model which has been sold for the last four years, and has flip-flopped from white to black. You can literally hold the box in the palm of your hand now! In addition to the new diminutive size, the latest Apple TV does away with downloadable content purchases in favor of streaming right to the box -- no iTunes sync required.



First-run HD movies from Hollywood are $4.99 with regular SD rentals starting at $2.99 and catalog HD rentals starting at $3.99. As predicted, TV show rentals have been added at long last and will be 99 cents per episode -- and commercial free. ABC and Fox are first on board as reported by The Wall Street Journal only last night, and Apple hopes to have other networks on board in the near future.

In keeping with other recent rumors, Netflix streaming is now part of the Apple TV package (Netflix subscription required) as well as YouTube, Flickr and MobileMe photos. iOS is a no-show, however -- the interface remains mostly unchanged from the current Apple TV. Steve Jobs calls the Apple TV edition of Netflix “by far the best implementation” -- although it doesn’t appear that you can add to or edit your Instant Queue from the brief demo shown today, so that remains to be seen.

Other features in the new Apple TV include filmography data for actors as well as Rotten Tomatoes reviews, right on your screen. On the hardware side, the new, smaller Apple TV features HDMI, digital optical audio and an Ethernet jack, leaving out analog connections for older televisions.

The new Apple TV is all about streaming -- no more syncing huge media files from iTunes, now everything streams wirelessly to the box for click and play simplicity. You can fast-forward through opening credits, pause for a popcorn break or even replay a hilarious scene, just like before.

Apple has also introduced AirPlay, which allows iPhone, iPod touch and iPad users to stream their handheld content -- including music, photos and video -- right to the new Apple TV with the push of a button. Start watching a move or TV show on your iOS device, tap the AirPlay icon and choose the Apple TV and like magic, whatever you’re watching will instantly begin streaming to your HDTV.

The new Apple TV is priced at only $99 and will be available in six countries to start. Preorders begin today and the device ships in four weeks.

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