Price of new Apple TV is likely to be set at $99 USD and it will run on iPhone OS4 and A4 processor. The current Apple TV has not clicked well with the customers and is too costly as well.
There are reports that Apple has felt to update its new device as Google TV is about to be released in the market. Rumors were that he upcoming set-top box will have 16GB flash storage and is capable of full 1080 HD.
Apple TV is capable of displaying YouTube videos and images from iPhoto and Flicker and it gets video content also from iTunes in SD and HD quality.