Apple has unveiled a new movie download service and a television set-top box at a company event in San Francisco in an effort to expand its media empire to the living room.

The television connector box, codenamed iTV, is scheduled for release in the first quarter of 2007.

It will feature HDMI, traditional three-plug composite and optical cable video outputs, and can connect to a computer via Ethernet or wirelessly through Wi-Fi.

"This is the missing piece," said Apple chief executive Steve Jobs, who went on to summarise Apple's new home-user strategy as "iTunes in the den, the living room, the car and the pocket".

• VIDEO: Apple shrinks the iPod Shuffle
• VIDEO: Apple sets sail for the living room
• VIDEO: Apple updates iPod Nano

Michael Gartenberg, vice president and research analyst at Jupiter Research, said: "The big news is that Apple wants to be in every room in your home." 

But the analyst warned that delivering high-resolution video through a wireless connection remains a daunting task.

"It sounds like Apple is taking ownership of the problem. If it doesn't work out it is going to have huge issues, but it does have a good track record for making this stuff work," said Gartenberg.

Jobs also unveiled the full-length movie download service that had been predicted by many analysts in recent weeks.

The service, available through a newly-released iTunes version 7, will allow users to download full-length films at prices ranging from $9.99 to $14.99. A European version is expected to launch sometime in 2007.

• Videos of the iTV; the new iPod Nano and new iPod Shuffle are available on the Silicon Valley Sleuth blog.