Making an aggressive move into the Internet-television market, Apple Inc. Chief Executive Steve Jobs unveiled a new device that can deliver 99-cent rentals of TV shows over the Internet. He also updated the company's line of iPod media players.

The new, smaller Apple TV will only let people rent, not buy, videos. "There are no more purchases," Mr. Jobs said at a press event Wednesday. The box will cost $99, compared with $229 for an earlier version, and be available in four weeks.

Apple TV has been around since 2007, but it hasn't caught on with the mainstream. It doesn't record shows the way TiVo and other digital video recorders do.

"We've sold a lot of them, but it's never been a huge hit,'' Mr. Jobs told the audience. He said the previous Apple TV, which stored videos purchased on iTunes, was too complicated for average consumers.

On the new box, TV show rentals will be available from News Corp.'s Fox and Walt Disney Co.'s ABC. Rentals of first-run high-definition movies will cost $4.99 the day they come out on DVD. The device can also connect with Netflix Inc.'s streaming video service as well as Internet content from sites like YouTube.

Mr. Jobs, wearing a black crew neck rather than his trademark mock turtleneck, said the company has sold more than 120 million iPhones, iPads and iPod Touch devices and is activating 230,000 devices a day with its latest operating system.

In a refresh to the iPod Touch, Apple is adding video-chat features similar to the newest iPhone. It has a front-facing camera for conducting video chats with other iPod Touch and iPhone users over Wi-Fi using Apple's FaceTime program. A camera on the back can be used for taking snapshots and recording video. Prices range from $229 to $399.

The new iPod Nano has a touch screen and lacks buttons. Like previous versions, the Nano has a built-in FM tuner and can display photos. But instead of buttons, controls for playing, pausing and selecting music are right on the screen. It will cost $149 for the 8 gigabyte version and $179 for 16 gigabytes.

Mr. Jobs also introduced a new iPod Shuffle, the lowest-end music player in Apple's line. Like the past generation, it can speak the names of playlists and songs. But unlike the most recent of the tiny music players, the new $49 device brings back the square shape and buttons of Apple's second-generation Shuffle.

Mr. Jobs also said iPhone users will be getting a software update that offers the ability to upload high-definition video over Wi-Fi. The software also allows users playing games to find other users and invite the to play over cellular connections.

And when people take photos, the new software will save three slightly different copies that, when combined, make for a sharper image.

The new software is version 4.1 of the iOS system. It will be available next week for free, initially for Apple Inc.'s iPhone and iPod Touch.

The iPad currently runs an older version, though Jobs says an update coming in November will add such features as wireless printing to Apple's tablet computer. Apple had been criticized for making a powerful device but hobbling it by not including any ports for USB devices such as printers or thumb drives.