Ok, so I bought the ATV3 yesterday which now sits in my living room and my old ATV2 is sitting in my bedroom. I have in my collection 3 HD movies from iTunes (Brave, Hunger Games and Dark Knight) which were all downloaded to my Mac as 720p files. I switched my preference to 1080p and checked my purchases in the Store and was able to redownload the 1080p versions of the films. From a cloud standpoint, I know the ATV2 will use the 720p and the ATV3 will use the 1080p by default. However my question is do I need to have both copies sitting on my hard drive for them to work via Home Sharing? Brave (1080p HD).m4v Brave (HD).m4v So for example these two files are in my Brave folder. Can I delete the Brave (HD).m4v and still stream via Home Sharing to the ATV2? Will it down scale the 1080p version? I can see how having a ATV3 and ATV2 will start to wear on my hard drive if I need to have both copies. Thoughts?