At first glance, it appears that Apple missed an incredible opportunity today by not announcing apps for AppleTV. But read in between the lines: They did. Apps are coming to your TV, just not how you thought they were. With iOS 4.2 you'll already be able to beam the content from 3 apps to your AppleTV: Video, Music and Photos. The real revolution will come when Apple opens this to 3rd parties. The living room will be conquered by iPads and iPods. Apps will be hosted on iOS devices and beamed to your TV. AppleTV will simply be a liaison between your personal iOS devices and your TV. Apple recognized that the biggest potential isn't in selling these TV boxes, it is in selling iPads, iPods and iPhones. It's a brilliant move. The next step will be on the iOS side. Apps will come to AppleTV, but not on the device itself. iOS 5 next year will introduce the ability for apps to stream to an external screen via AirPlay. At the next WWDC, developers will be given new API's that will allow them to specify a UI for a second screen in HD. For example, games will have their controls on your handheld iOS device while the main action will take place on your big screen. A news App would display the story in your hands while video and photos would show up on your HD TV. A sports app would display stats on the small display and visual content on the big one. In May 2010, I posted the following scenario in this forum. It is still relevant today and I see the realization of this vision coming together with today's announcement. With the inclusion of AirPlay in AppleTV, the stage is set for it to become a link from your iOS devices to your TV. By making AirPlay an industry standard that can be included in new TV's everybody will want to jump on the Apple bandwagon. We'll begin seeing TVs that can stream content from iPads, iPods and iPhones. AppleTV is Apple's version in this space, but to their benefit, not exclusive. Stay tuned. A living room entertainment revolution was announced today. We just don't know it yet.