Jobs – “We’ve sold a lot of them but it’s never been a huge hit. But neither has any competitor product.”  Viewers want better options… everything in HD… lower prices.  Jobs – “This is a hard one for people in the computer industry to understand. But it’s easy for consumers to understand.”  People don’t want to manage storage… or sync with a computer.

Introducing the new Apple TV… at 1/4 the size!

HDMI, Ethernet (802.11n) & new Aluminum remote.

HD EVERYTHING!!!!  And no purchasing… everything is a rental.  No storage issues… everything is streaming!

iTunes will rent first-run HD movies for $4.99 the day and date they come out on DVD.  They’ve got ABC and Fox shows because the other studios didn’t want to commit. But Jobs thinks they will “see the light” soon.

Netflix will stream through the Apple TV!!!!!!!!!!!!!!!!!!

YouTube, stream photos off of Flickr, and stream photos and video off mobileme.  Of course you can stream photos and videos and music off your local computer.

Customer & Rotten Tomato reviews built-in.  For shows that you flag as your favorites, each show will show up in your list and have a badge on them showing new episodes that you haven’t watched.

Jobs – “This is by far the best implementation of Netflix too.” *applause and laughter*

With AirPlay is streaming content from an iOS device to Apple TV.

He’s queuing Up on the iPad. When he’s playing Up, he can push the button to stream to Apple TV, and it will shoot the movie over Wi-Fi onto your TV.

Price is $99 (avail later this month): TV Shows – $.99… Movies $5