Technology giant Apple has announced a new version of its TV set-top box which allows people to rent films and programmes to watch on a high-definition screen.

The second Apple TV set is smaller and cheaper than its predecessor, and can synchronise with a TV rather than needing a computer, although it cannot record live TV shows.

Steve Jobs, Apple's chief executive, said the first Apple TV was released before customers were used to the idea of watching programmes on the internet.

He said of the gadget: "We've sold a lot of them, but it's never been a huge hit."

While the original version sold for £149, the new one is just £64 and 4in square. It enables owners to rent content rather than buy it, with high-definition films available on the day of DVD release for £3.24. New TV shows will be available from Fox, ABC, ABC Family, Disney Channel and BBC America.

At the same media event in San Francisco, Mr Jobs also unveiled a new iPod collection - including a touch-screen version of the Nano - social media features for its iTunes software, and new software for the iPhone, iPod Touch and iPad.