Apple TV System requirements
- Wi-Fi (802.11a, b, g, or n) wireless network (wireless video streaming requires 802.11a, g, or n) or 10/100BASE-T Ethernet network
- iTunes Store account for renting movies and TV shows
- Netflix account for streaming Netflix content
- For streaming media from a Mac or PC:
- iTunes 10.2 or later; iTunes Store account for Home Sharing
- MLB.TV subscription required to watch live and archived games
- NBA.com League Pass Broadband subscription required to watch live and archived games
Please note that AppleTV will only play media that is listed in an itunes library.
For video in particular, the media has to be compatible (in essence h264 format), and even if it itunes it not compatible it won't play - check the AppleTV specs page.
AVIs, MPEG 1/2, VOBs, ISOs, DIVX, WMV etc won'y play without conversion.