Is digital television the TV of the future? With the ability to stream whatever movies or shows in an instant to a device that is portable – why wouldn’t it be? Apple thinks just this and this is possibly the reason why they recreated their Apple TV.

What is Apple TV? It is a digital media receiver that was designed to play digital content from iTunes Stores, Netflix, YouTube, Flickr, MobileMe or any Mac OS X or Windows computer running iTunes – into an enhanced-definition or high-definition widescreen television.

If you have other Apple products such as iPod speakers or a digital media receiver you can connect Apple TV to these as well so that you can create a home-theater. But maybe you knew all that as Apple TV isn’t new. It’s existence was announced in September of 2006. The initial version was shipped with a 40GB hard disc followed with a  160 GB two months later. By 2009 the 40 GB model was discontinued.

Despite the fact the Apple TV didn’t do as well as most of Apple’s releases, the company is still plugging away at improving it. On September 1, 2010, Steve Jobs announced a smaller version of Apple TV that allows users to rent movies and TV shows and stream video from their computers, iPhones, iPod Touches and iPads via AirPlay into a little portable device.

What is different with the 2010 model? The newer device had the hard drive removed completely from it as it was mostly going unused. With this, the 2010 model had a huge price cut.  And now,  with AirPlay, one can stream any purchased movies to the Apple TV, which makes the Apple TV almost seem like an iPad accessory.

Another benefit of the remake of Apple TV is that it is easier to use as some of the more complicated functions have been removed. Old models made it appear as one had to buy everything one wanted to watch rather than having a choice to also rent.

While there is still complaint on the TV side of Apple’s options, showing only shows from ABC and Fox at .99 a pop, Apple is working on getting all studios on board.

When this happens, experts are wondering if consumers will kill their cable? Not if size is important? The new version of Apple TV is 80 percent smaller, making this TV more of a personal TV than the type you put in your living room. The new version has a screen that is 3.9 inches wide, 3.9 inches deep and 0.9 inches high. The TV also comes with the little Apple remote but it is hard to imagine being so far back from such a small screen to need a remote.

How does the TV function without storage? Apple is using what is called cloud-based storage and streaming of content. Of course this means you cannot store your TV shows, movies or games.

How much for this TV? Believe it or not, only . This may be the most affordable Apple product out. What do you get for your ? There is a Micro-USB port on the back, but this is only for service and support. Okay, well, it’s compatible with high-definition TVs with HDMI including Hitachi, JVC, LG, Mitsubishi, NEC, Panasonic, Philips, Pioneer, Samsung, Sony, Sharp, Toshiba, Vizio, Westinghouse.

The Pros and Cons from users? Pros are that it is affordable, small, runs more quietly than the previous model, is using an A4 processor and one can stream video from their iPhone, Macbook or iPod Touch. The Cons – no internal hard drive, USB port is locked so it won’t allow adding of a hard drive, only allows renting of shows and movies not purchasing, no ability to download games from App Store, no option to have a daily, weekly or monthly live programming service, rental fee pricing could add up to more than what cable providers are charging, and it only supports 720p, not 1080p t HD content due to the limitations of the A4 processor.

So is it worth the and putting away the regular TV? Maybe not yet.

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