Jobs is now turning to AppleTV. AppleTV was introduced four years ago, but it was not a big hit. Nothing has hit in the living room yet. Users love them and use them a lot. So what have we learned? Users want Hollywood movies & TV shows whenever they want them. They don't want amateur hour. They want everything in HD. They want to pay lower prices for content. They don't want a computer on their TV. They go to their big screen TV's for entertainment. (This last comment is a jab at Google.)
They don't want to manage storage. And they don't want to sync to a computer. It's too complicated. And they want the hardware to be silent, cool and small.
Introducing second generation of AppleTV is which about one-fourth the size of the original. You can hold it in the palm of your hand. It has a power supply built-in (no power brick), one HDMI connector, and built-in wi-fi. All rentals, no purchases now. You stream content from your computer.
$4.99 for first run HD movie rentals. HD TV show rentals will be 99 cents (commercial free). A big step for the studios. ABC and Fox are offering their shows. Think rest of studios will get on board later.