>> [ music ] Watch movies on your Mac's and PC's. [ applause ] You can watch movies on all the current generation iPods and you can watch movies on your iPhone. What about this? What about this flat screen TV? That I just bought. I'd like to watch the movies there too. Well, I have to say all of us have tried. We have Microsoft, Amazon, Tivo, Voodoo, Netflix, Blockbuster; we've all tried to figure out how to get movies over the internet and onto a widescreen TV. And you know what? We've all missed. No one has suceeded yet. We tried with Apple TV. An Apple TV was designed to be an accessory for iTunes and your computer. That's not what people wanted. We learn that what people really wanted was about movies, movies, movies. And we weren't delivering that so we're back with Apple TV take 2. It still syncs beautifully to your computer if you want but no computer is required to use Apple TV take 2. [ applause ] ^m00:01:44 So, here's what you can do with Apple TV. You can rent movies directly on your widescreen TV. You don't have to rent them on a computer and move them over, you can rent them directly on your widescreen TV with Apple TV. And you can rent them in DVD quality and you can rent them in HD with full, [ applause ] ^m00:02:14 with Dolby digital 5 dot 1 surround sound. The quality is unbelievable. You can also now view audio and video podcasts right on Apple TV. You can choose from over a 125,000 podcasts in the iTunes podcast directory and see them right on your widescreen TV. Photos, you can get photos from you computer but you can now go right over the internet and get photos from Flicker and Doc Mac and watch them. [ applause ] As you know, photos are stunning on a widescreen TV because modern digital cameras are all HD resolution. And of course You Tube, we've been working with the guys at You Tube for quite some time and we've expanded the selection. There's over 50 million videos that you can now watch on your widescreen from You Tube. This has worked out so great, our customers love this. You can now buy TV shows and music right on your widescreen TV with Apple TV and if you are using a computer, it'll automatically sync them right back to your computer. And of course, you can play iTunes content and watch photos directly from your computer if you want to do that, it's even better than the original Apple TV in this regard. So all of this stuff on the new Apple TV. I'll be focusing on the HD movies for a minute. As we said, we have library and new release titles and the library titles are two ninety-nine and three ninety-nine. Well an HD are just a dollar more, three ninety-nine and four ninety-nine. You can rent them in HD quality and we've got over a hundred titles in HD today and this is gonna build really fast. We're very, very excited about this. So, all of these features and an entirely new user interface.