It offers a simple and effective way of streaming all your iTunes content to your big screen TV – and your computer doesn't even need to be switched on for this to happen.
What's more, it's not exclusive to just the one PC. If you have a network in your home you can also stream content from up to five additional PCs with a few simple button touches.
That means you can view podcasts, trailers, film clips, photos and other content you've downloaded on your TV, as well as listen to your music, using the included remote.
It comes with a 40GB hard drive to store content locally for faster streaming.
The box, which is both sleek and small (it measures in at 7.7-inches by 7.7-inches), connects to your TV via an HDMI port or component video and audio ports. iTunes automatically detects that you have plugged in Apple TV. Then the built-in wireless capability automatically syncs your iTunes from the PCs in your house.
Anytime you change your iTunes library, the content on Apple TV changes to reflect that.
Another neat feature is automatic bookmarking. For example, you could be watching a podcast on your iPod video on the way home from work.
If you don't finish watching it by the time you're home, you can plug the iPod into iTunes and continue watching it on Apple TV.
The bookmarking feature automatically knows that you were halfway through it and gives you the option to start watching again from the beginning or to resume where you left off.