It isn't clear whether or not the new Apple TV will be compatible with software from the App Store, though it makes sense considering the shared platform. The device is said to be quite small, with ports for the power and video out only, and will be capable of up to 1080p HD streaming over the web or from other computers in your network. Also, the projected price being tossed around is just $99, which is uncharacteristically cheap for an Apple product.
Currently, the Apple TV costs $229 and comes with 160GB of storage. The rumored low price for its successor might finally get people interested in Apple's set-top box. It remains to be seen if the company will change its content strategy and finally open the device to support video and audio from sources other than YouTube and the iTunes store. With Google readying its own TV platform competition could get very interesting in this market.