Apple says the next update for Apple TV is due to ship within the next two weeks.
Apple CEO Steve Jobs announced a free, major upgrade to the Apple TV at Macworld Expo in January. The device will soon receive a software update that will enable it to download video and audio content from the iTunes Store directly, without needing to go through a computer first. The update is designed to dovetail with another recent development, the release of movie rentals on iTunes.
Apple is offering the update free for current owners of the Apple TV, and is also re-pricing the Apple TV to make it more competitive.