Apple Launches New Version of Apple TV

As expected, Apple on Wednesday unveiled a new version of its Apple TV platform (which, perhaps not surprisingly, in light of the trademark problems such a brand would have entailed, will not--as had been widely reported--be branded as the "iTV") at an event in San Francisco. According to the company, the new Apple TV (which, like the rival Roku platform and soon-to-be-launched Boxee Box, and unlike the old version of the Apple TV, does not offer local storage, other than flash memory for buffering):

• Will be priced at $99 (note: the previous version was priced at $229) and will be available later this month (it can be pre-ordered today).
• Will allow US users to rent (but not buy) thousands of commercial-free, high-definition TV episodes (but only from ABC, ABC Family, Fox, Disney Channel and BBC America: according to Apple CEO, Steve Jobs, other broadcasters "will see the light soon and get on board with us") on iTunes for $0.99 each, with up to 30 days to start watching them, and then up to 48 hours to finish viewing them once started. Apple says that users in the US, the UK, Australia, Canada, Ireland, New Zealand, France and Germany will also be able to rent over 7,000 movies on iTunes, including over 3,400 in HD, with most new releases (which are priced at $4.99) available day-and-date with their DVD release.
• Will support 720p HD, but not the higher-resolution 1080p format.
• Will allow users to stream content from Netflix (note: according to Apple, Netflix subscribers will be able to browse and search, rate content and add or remove titles from their queue via the new device), YouTube, Flickr and MobileMe, as well as music, photos and videos from PC's and Macs, to their HDTV. The company says that users will also be able to "access slideshows of their photos on their TV's, using the device's "selection of built-in slideshows."
• Has built-in HDMI, WiFi, Ethernet and an internal power supply, comes bundled with a seven-button aluminum remote control, and features "silent, cool, very low power operation in an enclosure that's less than four inches square" (i.e. 80% smaller than the previous generation of the device).
• Is quick and easy to set up with a single HDMI cable connection (note: the HDMI cable is sold separately). "Just connect Apple TV to your HDTV, join a WiFi network and with a few clicks on the seven-button aluminum Apple Remote, you have access to amazing content," Apple promises in its press materials.
• Can be controlled with an iPhone, iPad or iPod touch, using the Remote app, which is available as a free download in the App Store. It also supports video streaming from those devices via a technology called AirPlay (thus allowing users to, for example, start watching a rented movie on their iPhone during their train ride home, and finish watching it on the TV when they arrive).

Contrary to reports earlier this summer in Engadget and the New York Times, the new Apple TV is not an iOS device, though it is powered by the same A4 processor that powers the iPhone 4 and the iPad. Also contrary to expectations (and disappointingly to many observers) it will not benefit from an App Store--though Apple CEO, Jobs, told Businessweek that the company might launch one for the device in the future.

Reactions to the unveiling of the new Apple TV from some of its more pugnacious competitors in the OTT space came quickly:

• Boxee, whose D-link-built Boxee Box is slated to launch in November, and to feature full 1080p HD support (versus the 720p support offered by the new Apple TV), as well as access to a much broader range of content (it is, however, expected to retail for around $100 more than the Apple device), issued the following statement on its corporate blog: "We think people want to be able to watch anything that they can watch on their computer, only on their bigscreen TV. There is an overwhelming consumer expectation that the content we can consume in our cubicles, our dorm rooms, and in our laps should be available in our living rooms, in full 1080p with a gorgeous interface. It's a simple premise, but the challenge is to do it in a way that makes sense in that space, so you can put your feet up, grab a remote and start watching. No keyboards, mice, windows or labyrinthine menus. It should be calm and it should be beautiful. And it *must* be open. We all watched the Apple announcement. We walked away feeling strongly confident about the space it left for Boxee to compete. We have a different view of what users want in their living rooms. We are taking different paths to get there. The Boxee Box is going to be $100 more expensive than the Apple TV, but will give you the freedom to watch what you want. We think it’s worth it."
• Roku, meanwhile, which earlier this week announced significant price reductions on its set-top boxes (see the article published on itvt.com, August 31st) pointed out via Twitter that its content partner, Amazon, has (as of Wednesday) begun offering a range of shows for purchase (not just rental) for $0.99: "Hey Roku customers, 99 cent TV shows are available for purchase on Amazon. Details here: www.amazon.com/99centtv," the company's tweet read. (Note: Paid Content has some analysis of Amazon's apparent attempt to steal Apple's thunder.)