Apple is upgrading its Apple TV software to allow HD downloads and improve access to media services.
The company has launched the iTunes movie rental service, which provides content from all the major Hollywood studios: Touchstone, MGM, Miramax, Lionsgate, Newline, FOX, WB, Disney, Paramount, Universal, and Sony.
The service will feature over a thousand movies which will be available 30 days after they are released on DVD. New title will cost $3.99 to rent, while older title will cost $2.99. Over 100 HD titles are also available for $4.99.
The movie rental service will initially be available in the US, but will be rolled-out globally during 2008.
The new Apple TV software, which existing Apple TV users can download for free, allows movies to be rented directly from the iTunes Store, eliminating the need for a separate computer.
It also allows users to access other content from iTunes, Flickr, YouTube, .Mac and other sites.
The new Apple TV hardware will be available for £199 with a 40GB hard drive, or £269 with a 160GB hard drive.