A new user-interface has been added, but the big news is of course the new movie rental offering through iTunes, which lets you rent or buy 1080p HD movies as well as standard-definition content without the need for a computer. Movies cost $3.99 for SD rental and $4.99 for HD offerings.
You have 30 days to start watching movies and 24 hours to finish watching once you've started.
There’s also a link-up to photo sharing website Flickr to that you can access all your photos, plus audio and video podcast support, and content streaming from YouTube.
The 160GB Apple TV can store up to 200 hours of H.264 video on its built-in hard disk drive, which can of course hold music and photos too. Movie rentals through iTunes won’t be available in the UK until later this year.
The Apple TV costs £229 and is available now.