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The difference between the old and new is hardware/os

- New one runs IOS vs Modified OSX
- New one runs better hardware, which means I can encode my blu-rays in higher quality 720p bit rate/settings and it will handle it like no problem whereas the old one will just stutter/struggle with it.
- Also the new one has the potential for Apps which is crucial which the old one will not.
- And AirPlay for the new one is going to be awesome once all third party apps on the IOS devices are enabled, that's a great feature the old apple tv does not have.
 
I've spent more than a day now with the Apple TV and I must say I am impressed. This is my first Apple TV, so I guess there is still that "new" factor but it's like nothing I've owned before. Picture quality is great on my 32", sound is superb. I also really enjoy that I can watch my podcasts on demand and go back and rewatch some older ones with ease.

I recently moved and have so far gone a month without cable tv, I was waiting for the Apple TV to arrive before I made my decision on fully ditching cable. I think it's safe to say I will. Netflix, Youtube, and the iTunes store are more than enough to satisfy my minor entertainment needs. Well done Apple.
 
I hope the YouTube functionality gets an update. There doesn't seem to be any way to see if you have new videos from your subscriptions. Also, a lot of my subscriptions seem to be missing from the "YouTube Subscriptions" page, which I think is a bug (have ~45 subscriptions, only 1/3 are listed).
 
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