Apple’s announcements yesterday were numerous: new iPods, including an incredibly small iPod nano, a new iTunes and the introduction of a download movie service in ‘near-DVD’ quality. But the most important announcement was for the preview of iTV.

It’s currently touted as a way of getting video from your computer to your TV. But look at the features: wireless networking, USB 2.0, component video, traditional and optical audio jacks.

So, why is it the size of a Mac mini, and why is it going to cost $299? Because, I believe, it’s more than a way of getting video from your computer to your TV.

Unlike other ‘media centre’ devices, which focus entertainment around the computer, this device distributes entertainment around the home. Just like the Sonos does for audio, the iTV will do the same for both audio and video. That’s why there’s the Ethernet cable. And that’s partly why it’s the same form factor as the Mac mini.. Grab a Mac mini and an iTV and you can start sending audio and video anywhere. Buy another iTV and you view video on the TV in your bedroom and connect it up to your powered speakers for music. Perhaps even sync or stream your iPod content from anywhere?

Okay, now why does it cost $299? For three reasons: it probably has high quality audio and video components; it needs a price that sits in the marketplace (think TiVo, Roku etc.); it’s got other stuff inside which we don’t know about yet.

Like a hard disc.

Update: Some people think that Apple are going to release an 802.11n wireless router with a Gigabit Ethernet next year for backward compatibility. They aren’t. Or rather, they are: just look at the iTV.