The new Apple TV.

Apple has unveiled the next generation Apple TV, which has been redesigned to bring high definition content to your big screen television.

The new device, which is 80 percent smaller than the previous version, has forgone the high capacity internal hard drive of the previous iteration to make streaming content its main focus.

High definition movie rentals will now start at A$4.99 (previously $5.99), while standard definition rentals will start at A$3.99.

In addition to streaming your existing music and video library from your Mac or PC, the new Apple TV will now be able to stream content wirelessly from your other iOS devices (iPad, iPhone, iPod touch) with the new AirPlay feature.

99¢ high definition TV show rentals were also announced for the US, from ABC and FOX, though TV show rentals don’t appear to be coming to Australia just yet (only the existing A$2.99 TV show purchases will be available).

US customers will also be able to take advantage of Apple TV’s new Netflix streaming, giving subscribers instant access to their Netflix account’s instant-watch queue. Netflix joins the previously available internet services YouTube, Flickr and MobileMe galleries.

The new Apple TV will cost A$129 and will start shipping in 4-weeks time.

Visit the apple.com/au for more info and pricing on the new iPod line-up and next generation Apple TV.