Apple Beefs Up Apple TV Offering

In an attempt to make the product more attractive to potential buyers, Apple has begun selling a version of Apple TV with a 160GB hard drive as well as announcing plans to allow access to YouTube from the device.

"These were the two pieces missing from Apple TV when it was announced," Forrester analyst Josh Bernoff said, speaking of more hard drive capacity and streaming content. "Apple TV is officially no longer lame."

Users of the device will be able to download the YouTube functionality as an update beginning in mid-June. While initially only several thousand videos will be offered, the entire catalog will be available by the fall.

Videos will be converted to the H.264 standard for playback on the device, rather than use the Flash video technology YouTube employs for its video streaming. The companies said that is the reason why the full catalog wouldn't be initially available.

It is not exactly clear why Apple did not just add Flash functionality into the device, although it is typical for the Cupertino company to rely on its own proprietary methods when adding new features to its products.

Along with the announcement of the YouTube offering, which many analysts suspected would eventually happen, Apple will also offer a 160GB version of the device for $399. The standard version, which includes a 40GB drive, retails for $299.