Apple just admitted that the first Apple TV didn't quite work out -- so it's back with a new model that can access iTunes directly, and streams movies from the new rental store in both DVD quality and HD with 5.1 surround. HD rentals cost a dollar more than SD content -- $3.99 and $4.99, and they'll sync back to your computer as well. The YouTube selection has also been expanded to 50M videos, there's now Flickr support in addition to .mac, and what's more, the entire UI has been revamped. The new single menu interface offers quick search of all available titles, and includes access to 600 TV shows that are available for $1.99, as well as your iTunes library and HD podcasts. Current owners aren't left out in the cold, though -- Apple's offering the new software as a free download. That's not all, either -- to lure you in to the frightening world of HD rentals, Apple's dropped the price to $229, down from $299.
We'll have a hands-on with the updated Apple TV in just a few right here -- stay tuned!
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Apple TV, take 2