what does apple tv do

Never realized Apple TV was so tiny. That makes it far more attractive.

But what does it DO? I've never seen an explanation of what it does, what it might replace, what it adds, what it doesn't do . . . only "Will it work with this?" or "Can I use it to do this?"

What is it? What's it for?

Oh, and how do I convince my technologically suspicious wife that we desperately need one?

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