
The new AppleTV is a small device. Steve Jobs illustrated that fact on stage by holding one in the palm of his hand. There is no internal storage — at least, none that we'll have access to. This is the big differentiating factor from other set-top devices on the market. Apple is making it very clear that your content will have to come from other places, and can't be stored inside.
What sort of places are we talking? The iTunes store, for one. HD episodes of popular TV series can be rented for $0.99 in the US, as long as you're a fan of FOX or ABC programs. New HD releases are available for $4.99, while older titles are $1 less. Just don't try to purchase anything — with that lack of storage, it's rental only in these parts. Nothing's stopping you from purchasing something via iTunes and streaming it over from a desktop or laptop (or even iPad), but the lack of functionality still strikes us as a little weird.
Thankfully, that Netflix rumor turned out to be true; you can use your subscription just as you would on any another device. But for those of you already streaming Netflix through your PlayStation, Xbox or similar device, Apple's not breaking any new ground here. In fact, you might say competing devices still have the upper hand, especially when you factor services like Hulu into the mix. If you've got another device that's already Netflix capable, this might not be the AppleTV's defining feature for you.
In terms of streaming your networked content, here's where things get bad — playback appear to be 720p only, folks. Despite the HDMI output, it seems the device's A4 brains are acting as the bottleneck in this particular scenario. If you're fiercely loyal to the Apple ecosystem, however, that's unlikely to be a problem. No iTunes content exceeds 720p in terms of resolution anyhow. Just don't expect to be streaming those 1080p Die Hard rips any time soon.

The elephant in the room here, of course, is bandwidth. Apple is banking its multimedia future on a world without storage, one where users needn't worry about syncing or file management. Considering the low price of TV rentals, repeat viewings shouldn't place the hurt on anyone's wallet, but we can't say the same for our bandwidth caps. This will obviously affect some more than others, but we'd be hard pressed to say the AppleTV is perfectly suited for the reality of today's internet connections.
But shortcomings aside, the one thing that may make it all worthwhile is price. Engadget was right — the AppleTV is $99, far cheaper than the previous iteration. Considering the price of an iPhone or iPad, this things is practically situated in accessory territory, making it an easy, impulse buy for many Apple users.
The question is, will you be picking one up yourself? Or does the HTPC or game console in your living room meet your present needs just fine?









































