First off, Vimeo support. Popular (but not as popular as YouTube) video hosting site Vimeo, has been supported on other iOS devices for some time now, since Vimeo's switch to html5. The Apple TV runs on iOS, so with a quick software update, it is now able to access Vimeo movies.
Second up is the big one. The Apple TV doesn't have any on-board storage. It does, however, have access to your iTunes library through AirPlay, and now, through the cloud. Because of this, you can buy movies and tv shows right from your Apple TV, and play them through the cloud. You can then download them on your computer or iOS device.
It's a great update, especially the ability to finally purchase media from iTunes. iOS 5 is expected to roll out this Fall, so the Apple TV may get another update in the future.
via MacRumors
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