Apple CEO Steve Jobs has introduced a revamped Apple TV device.

Apple TV, which has never been successful, is a quarter of the size of the current model, fits in the palm of your hand, and sells for just $99.

At the annual products launch, Jobs said the TV system device had been minimized after decisions were made to ditch the company’s video purchase model, dramatically reducing Apple TV’s storage requirements.

The gadget will now be for movie and TV show rentals with movies rentable for $4.99 and TV shows available for 99 cents each.

Jobs said the device would have the largest library of movies in the world available for rental.

A new iPod line, an iTunes social network and updates to the operating system for the iPhone, iPod Touch and the iPad were also launched at Apple’s highly anticipated product event on Wednesday.