AppleTV update adds Airtunes! AppleTV now appears as speakers in iTunes

Having successfully updated my AppleTV the other day, I noticed something new in iTunes….

Along with my local “Computer” speakers and Airport Express “Lounge” speakers that I used to have in iTunes

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the AppleTV now appeared in the drop down list of available speakers to stream music to:

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I hit play in iTunes and selected the AppleTV speakers from the selection box, after a few seconds pause to connect with the AppleTV, my song started streaming through the TV speakers and surround system in my lounge.

This is great news for me as I only purchased my Airport Express to stream music to the Lounge since the AppleTV didn’t have Airtunes functionality. Now I can remove the Airport Express and put that into the kitchen, and I was about to buy another Airport Express just for that so I’ve saved £70 thanks to Apple’s free update.

There is an new option page in the AppleTV settings for Airtunes allowing you to turn the feature on/off and also set an Airtunes password:

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UPDATE:
If you have your TV turned on and showing the AppleTV source, when you change tracks on your computer/laptop and stream to the Apple TV Airtunes speakers the corresonding track name and album art are shown on the TV as if you were selecting and playing the music from the Apple TV.