Apple has unveiled its new Apple TV device, with the updated unit being considerably smaller than its predecessor (80% according to the company), and offering no local storage, focusing instead on wireless streaming.

The new Apple TV, previously derided as a "hobby" for the Cupertino-based tech giant, now enables users to stream content from Netflix, YouTube, Flickr and MobileMe to their living room television, as well as digital media such as music, photos and videos from PCs and Macs on the home network.  Connections built into the device include HDMI, Wi-Fi and Ethernet, and it also has a built-in power supply.

Users can also now rent HD TV episodes from iTunes for US$ 0.99 per title, a change which is likely to prove popular with users who have previously complained about the obligation to buy.  Indeed, the unit is rentals-focused, and streams titles from iTunes, while owned movies stored on another iTunes library in the home can also be beamed to the device, which also displays Rotten Tomatoes reviews of movie titles.  Content partners on board at launch are Fox, Disney (including ABC) and BBC America.

“The new Apple TV, paired with the largest selection of online HD movie and TV show rentals, lets users watch Hollywood content on their HD TV whenever they want,” said Steve Jobs, Apple’s CEO, in a statement. “This tiny, silent box costing just US$ 99, lets users watch thousands of HD movies and TV shows, and makes all of their music, photos and videos effortlessly available on their home entertainment system.”

Apple has also enabled users to control their new Apple TV using their iOS-based device, such as an iPad, iPhone or iPod Touch.  A new technology coming soon called AirPlay will also allow iOS device owners to stream content stored on their portable devices to the Apple TV.