As we posted earlier today, Apple announced that several movie studios will now be releasing digital versions of their movies for sale on the same day as the DVD. Even Apple TV users can get in on the fun. You now have the option of buying movies directly on your Apple TV, whereas before today you could only rent movies from Apple TV. Sure, it's not groundbreaking considering you could buy the movie on your Mac and transfer it to your Apple TV, but it's nice to see the added layer of convenience.

Apple TV owners will also note a new "Top Sellers" category in the "Top Movies" page, an additional option for those times when you want to crowdsource your movie selection.

Thanks, Kevin!

If the native hackability of the version of OS X on the Apple TV isn't enough for you, there's now a convenient boot loader that allows you to install linux. This also opens up the possibility of running linux based video software, particularly MPlayer, Myth TV, and XMBC. Further, since there are linux drivers for the NVIDIA hardware decoder in the Apple TV there's also the possibility of higher resolution 1080i output as opposed to the 720p it's normally limited to.

Unfortunately, this is project is still in the early stages and none of this is working perfectly yet. Nonetheless, it's a interesting development on the Apple TV hacking front.

[via Apple TV Hacks]

Apple TV Source notes that the latest 2.0.2 update makes internet radio work a little better with the Apple TV. Basically you can play internet radio streams on the Apple TV if you have it synced to an iTunes computer with a playlist containing the streams. Before the update the source computer had to be on for this to work. Now, however, the Apple TV will retain the playlist even without the iTunes computer until it is restarted (it will retain the playlists even if put to sleep). The original post has complete instructions.

Apple has updated the Apple TV software to version 2.0.1. This is the first update to the Apple TV since the game-changing Take 2 software was released. Generally, with these "point releases," Apple doesn't change many things (mostly bug fixes and such).

The only significant difference in the update is the implementation of Genres in the "My Movies" list. Have you noticed any new features that we haven't covered? Be sure to tell us in the comments.

Thanks to everyone that sent in a tip!

Earlier this week, AppleInsider reported on an Apple TV patent filed in 2006 and just published; it shows DVR features, and the patent also includes a feature where the iPod could be docked with the Apple TV to sync content for on-the-go viewing.

"For example, program data for upcoming programs, e.g., for the next month, can be downloaded and stored on the remote control device," Apple said in the patent. "Thereafter, a user of the remote control device can search programs that are to be broadcast and determine which programs to record. The recording settings can be programmed onto the remote control device, and then be provided to the video device when a data communication is established between the remote control device and the video device."

If Apple manages to implement DVR functionality for the Apple TV, it could definitely bring a game-changing device to the TV industry. Who knows, it could become a direct competitor to the TiVo. Be sure to look through our gallery of patent filing pictures.

[via AppleInsider]

As Macworld has reported, Apple has failed to meet their target of 1000 standard definition rentals and 100 HD rentals, that they claimed would be available by the end of February. While the number of HD titles available via Apple TV is pretty close to the promised figure, 91 according to Macworld, not all of these films offer DD 5.1, which was one of the hyped HD features.

As for regular rentals, by Macworld's calculations, around 400 titles are available (my own calculations show 417), which isn't a substantial increase from my own calculations back in January. The total number of available films, for rent or purchase, available via iTunes is teetering around 800 by my calculations. Clearly, this is well short of 1000 titles.

So the question becomes, why is there a delay? Some of the editorials that have appeared online seem to take the position that Apple failed to meet predictions in part because of delays with the Apple TV software. While I could see how that might affect the number of available HD titles (and remember, HD titles are much closer to meeting expectations than regular rentals), this just seems too convenient.

It has also been inevitable that parallels be drawn between the number of available movie rentals and the delays with the iPhone SDK, as if there is some sort of pattern in Apple not meeting expectations. To me, this makes absolutely no sense. As far as I can tell (and granted, I'm no expert), the iPhone SDK is wholly unrelated to iTunes and the iTunes rentals. The fact that both systems have had logistical problems with roll out is unfortunate, but I can't see how they are either related or indicative of a trend.

So what's the real story? While I doubt we will ever get a definitive answer, I think Ars Technica has the most plausible theory: licensing issues with the movie studios. It's no secret that the studios have been reticent to fully embrace digital distribution. Personally, I think the fear that digital rental sales could cannibalize home video sales is understandable. Home video attributes for a huge amount of the studios return on investment and embracing one model at the risk of another must be scary.

Plus, it is clear that Apple had to cede to the studio demands just to get the rental agreements in the first place. True, all the major studios are represented, but certain production companies still have the right to refuse to appear on iTunes. Apple also conceded to flexible pricing and a 30-day exclusive DVD window (if the studio chooses to invoke it). Apple does not possess the power they have in music sales in the video space, as such, I find it more than plausible to believe that they are more at the studio's mercy for when films will be available and on what terms.

Undoubtedly a large library was one of the keys to iTunes' success in music. It is crucial that Apple achieve something similar if they want rentals to succeed. It's easy to blame Apple for dropping the ball, but in this case, I really think this is something that is out of their control.

[via Ars]

In the first half of our iTunes movie rental debate, Mike stakes out the "Pro" position on extended-duration rentals with an appeal on behalf of tired, stressed parents everywhere.

Let me just say it: there is a perfect market for iTunes movie rentals. It's the same market that Netflix or VOD sales addresses, the same audience that prefers (or is limited to) staying at home rather than a night out at the movies. You know who we are -- the stroller patrol, the breeder bastion, the Momfia... the parents. We crave entertainment, and we're willing to pay for it, but our evenings are squeezed to the point of nonexistence. By the time the offspring are fed and watered, tucked away in their beds, we might only have an hour or two's worth of 'we' time to enjoy a feature film. If someone wakes up and needs 15 minutes of settling back to bed, well, forget it. With the 24-hour watch time limitation on iTunes movies, tomorrow night, when we might have another chance to view our movie, it's too late.

Thus, opinionated folk such as David Pogue, Rob Griffiths, Glenn Fleishman, and our reader Marshall (his open letter to Apple is reproduced at the end of this post) all concur that some form of extension past the 24-hour limit makes great sense to parents and great sense to Apple's rental market. I join my voice to theirs, and offer this modest proposal: Add a $0.50 surcharge for a 6-hour extension, or $1 for a 12-hour bump. Make the extra time optional -- you'd still have to decide and pay for it at rental time, not add it on after renting the movie, as the DRM challenges of a shifting finish line + multiple playback devices are probably too much to handle. I bet that parents of young kids, or families with variable evening schedules, would fork over the extra spare change to extend their rental times, and let's remember that those couple of quarters are pure profit (it costs the same in encoding and bandwidth for a 36-hour movie to download as for a 24-hour movie). I'd gladly take the extra time for free, but if you've got to add a modest surcharge I'll swallow my pride.

Give me a 36-hour rental and I promise this: I will buy an Apple TV and I will start renting movies on it. That's $225, cash on the barrel, plus what I'll spend on the flicks. Who's with me?

I've been looking for a good way to get a subtitled movie – with a SubRip (srt) file – into iTunes, my Apple TV and my iPod. I hadn't found much joy before this morning. Then I stumbled upon Submerge. I need to do some tweaking in the detailed preferences yet, but it seems to do the trick quite well.

Submerge supports most video formats, including mov, avi, and mp4. In addition to SubRip, it also supports the SubViewer 1 & 2 (sub) and MicroDVD subtitle formats. By allowing the aspect ratio to be forced in the conversion, Suberge can make better use of screen real estate on various devices. And if you want to speed things up, there's also support for the Elgato Turbo.264. Overall, it seems to be a great solution. Of course, if there's a better program for doing this for under $10, I'm looking forward to hearing about it in the comments.

Submerge is $9 and has a free trial available for download.

Rogue Amoeba has announced an update for Airfoil to version 3.1, adding support for sending audio to the Apple TV. Unlike the built-in iTunes support, Airfoil allows you to stream any audio source from your Mac to your Apple TV, Airport Express, or other Macs running their Airfoil Speakers client application. This allows you to use your Apple TV to listen to web-based "radio" sources like Pandora (my favorite) or last.fm, as well as other media players like QuickTime Player, etc.

Airfoil 3.1 is a free update to registered users and $25 for new users. A demo is available for download.

There's been some controversy about the HD video quality on the Apple TV, which we've covered before. Now that Take Two has dropped, iLounge has done the legwork to put together an excellent visual comparison. They compared four versions of Live Free and Die Hard: Blu-ray, Apple TV HD, Cable HD, and DVD.

The results were quite good for the Apple TV; while Blu-ray was the clear and expected winner, the Apple TV version outpaced the Cable HD version on several of the tests, particularly those testing compression artifacts. The upshot: "Because of its cleaner motion and audio, we felt that the Apple experience was better in both overall audio and video quality than the HD cable experience, and for most users, superior to renting a standard DVD as well." Check out their full article for many more comparison shots.

An upgrade to one of my favorite (and most useful) video compression and conversion utilities, VisualHub (which we've mentioned a few times), has brought with it support for 5.1 Surround Sound on the just-released Apple TV "Take 2." Despite not actually owning an Apple TV, I find myself happy for our video-converting, Apple TV-owning readers, and for the fact that any 5.1 AC3 audio I should happen to create won't be lost for that lucky audience.

The release notes also include some speed improvements for artwork tagging large (150MB+) videos not intended for the 'net, as well as a fix for aspect ratio conversion on Tivo-destined video. VisualHub 1.31 is a free upgrade for registered users. And for newcomers for whom it would be of use, it's worth every penny at the palindromic price of $23.32.

Visit the VisualHub website for more information.

Here's a short video of the Apple TV Take 2 software update. It shows the new Apple TV boot video and a brief walk through of the Apple TV software.

You can download the video in m4v format here.

Making phone calls from your television set is a clear sign that you are Living in the Future (tm), right up there with the jet packs and the meals-in-a-pill that we're all enjoying so much. If your current TV/phone configuration isn't meeting your needs, developer Brandon Holland has your back; he's just released an extremely early version of his Skype for Apple TV plugin (noted last month & today at Engadget) that leverages the Skype API to allow calls via USB headsets, text messages and more.

I can't really picture how this module is going to work for actual calling (and I don't have an Apple TV to try it out on), but if it refines into a true Skype client, and the Take 2 update doesn't completely nuke the Apple TV development scene, and Skype gets past its current security worries, this could be a very interesting path towards our videophone-enabled, jet-pack-wearing future.

Update: Matt comments that Brandon has a demo video up on his site, which is both technically interesting and slightly hilarious (watch for the test call where he tries to put the moves on Echo123, that faceless e-babe).

Thanks CK!

Just a quick update on the status of the Apple TV software upgrade: according to Apple's web site, the software is not quite ready and will be available in one to two weeks.

As we covered during MWSF, the Apple TV Take 2 (or as I like to call it, Apple TV Redux) will feature support buying music/movies/rentals directly from Apple TV, HD rentals and the ability to view pictures from a Flickr or .Mac account.

The update is free to existing customers and will presumably be shipping standard on all new Apple TV's as soon as it is complete.

Thanks WSN!

Update: Here is Apple's press release detailing that the MacBook Air is now shipping, and that the Apple TV update will be available 'by the end of February.' Thanks to Ominx for the link.

OK, this is cool. Starting today, properties from the The Jim Henson Company are coming to iTunes. The complete first seasons of Farscape and Fraggle Rock are available now for $1.99 an episode. According to the company's press release, the entire series should be available on the site in the coming months.

Now, I never watched Farscape, but as a television addict, I was pretty familiar with the various controversies over home video rights and for the show and how difficult it is to find on DVD. I can only guess that legions of Farscape fans will be happy to be able to download first season episodes from iTunes.

As for Fraggle Rock, well, this is something I can get behind. I remember watching the show on HBO at a very early age and the theme song still makes me smile. Fraggle Rock is actually the only "Muppet" property not owned by The Walt Disney Company (in 2004 The Jim Henson Company sold the rights to The Muppets and a few other properties to Disney), and as a result it's trek to DVD has not been as drawn out (though in the US we're still only up to season 3), but despite my general feelings about buying TV shows on iTunes, I will totally indulge in the nostalgia of the Fraggles.

Now that the TV season is pretty much at a standstill (we have Project Runway and American Idol, but that's about it), watching 25 year old Muppets sing songs or watching a beloved Sci-Fi show on the Mac or Apple TV is a bit more enticing than watching the emergency season of Big Brother.