Tiny New Apple TV Costs $99, 99-Cent TV Rentals Confirmed

At this morning’s Apple (s AAPL) press event, streamed live, CEO Steve Jobs announced a new Apple TV that’s a quarter of the size of the original box, with all-HD content (when available), cloud storage, and Netflix (s NFLX) and YouTube (s GOOG) access. The new Apple TV also allows content to be streamed from your computer or iPad to the television. The $229 price is dropping to $99, with pre-orders available today.

Oh, and as we reported, the price for renting TV shows in HD is dropping from $2.99 to $0.99 HD TV shows is shifting from $2.99 to buy to $0.99 to rent for the ABC (s DIS) and Fox (s NWS) shows that will be available at the outset. Other broadcasters have yet to commit to the service, but Jobs said that “other studios will see the light soon, and get on board with us.”

HD movie rentals are set at $4.99 for first-run films, which Jobs says will become “cheaper as time goes on.” The new store also includes Rotten Tomatoes ratings and cast/crew listings “for the first time.”

Jobs called the Netflix interface on Apple TV “the best implementation of Netflix yet,” though he was probably saying that because the interface is a direct ripoff of Apple’s Front Row interface.

Jobs also announced a complete overhaul of the iPod line, including FaceTime for the iPod touch. The iPod nano now has a square face and is smaller, and today’s demo emphasized the device’s music player and other features, including a clock face. The iPod nano camera has been removed, and the square screen implies that there’s a de-emphasis on video.

That just means more cameras for the iPod touch! The new version of the device will have front- and back-facing cameras, allowing people to communicate using FaceTime. On-device editing and direct upload to YouTube will also be possible.

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