Want to watch your iTunes videos on your high definition TV or home theatre system?
There's an Apple TV for that.
This little network appliance, about the size of a laptop's power adapter, behaves much like a set-top box.
It plugs into a high definition TV by way of an HDMI cable. It plugs into the wall for power.
It then listens for AirPlay signals coming over either wi-fi or wired ethernet.
Think of Apple TV as an antenna. It doesn't store video within itself.
Rather, it depends on some other machine to send it content over the network.
From your computer running iTunes, for example, you push video content (and audio, of course)
through the network through Apple TV to the high definition television.
In addition to iTunes, Apple TV supports Netflix, YouTube, flickr, and Vimeo.