Does AirPlay work with the first generation Apple TV?
Apple's new AirPlay feature, which allows wireless streaming of video from your iPad to your Apple TV, requires the 2nd generation Apple TV. AirPlay is not compatible with the 1st generation Apple TV / ATV1.
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Here's what Steve Jobs has to say:
It’s different technology. It does everything it did when you bought it.
From this site:
http://www.emailsfromstevejobs.com/2010/11/30/steve-says-airplay-on-1st-...