So we didn’t see Apple update Apple TV at the keynote on Tuesday but we can still expect a software update. All Things D has reported that a new update will be released alongside the widespread release of iOS 7.
The main change will be to Airplay and will allow people to play iTunes content on other people’s TV’s via Airplay. This can be done without downloading the media previously to the iOS device. Instead of that it’ll use the cloud to download the content automatically. It already does a similar feature on users' own Apple TVs but this will make it possible to do it on other Apple TVs. It’s designed to compete with the Chromecast, Google’s new ultra-cheap media streamer that poses a real threat to Apple TV.