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It is a
digital media receiver which plugs into your TV. You can rent films in high definition, you can buy television shows, you can access music, and you can view your photos. The majority of the content comes from the iTunes Store but you can also access YouTube, Flickr and MobileMe.
This unobtrusive white box plugs into your TV and you control it with the remote provided. It also needs an Internet connection to work. It can also stream content from iTunes accounts on any networked computers. It provides an entertainment hub and works much like an HTPC (home theater PC) which is limited to Apple and a handful of partner services.