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Cool, thanks. I guess my only other question is: If the movies are in the cloud, is it your iCloud storage, or are you connecting to Apple's own cloud (like VUDU)?

I knew it was like a Roku. I just wondered where the purchased movies live. Also, I often see mention of movies "on sale" at iTunes. Is that something you find out about in the App, or do they send emails?

When you buy movies via iTunes, how do they get to your Apple TV? Are they stored in the cloud like VUDU purchases? Or do you have to download them to your computer and link the computer to your Apple TV?