Apple didn’t just start offering DRM-free music today (which is awesome in itself), they also made a small announcement regarding the Apple TV. What exactly did they say? By mid-June, YouTube will be available on your Apple TV and by tomorrow, you’ll be able to buy an Apple TV with a 160 GB hard drive.

First on the YouTube part. Through a software update, a YouTube menu will be added that will allow you to view thousands of different YouTube videos. They’re will be a variety of ways to find the videos you want: featured, top viewed, recently viewed, history, and even a search feature that will be painful to use without a proper keyboard. The obvious question is how good will these videos look? On my 15″ laptop YouTube videos look pretty crappy as is. I can only imagine what it’ll magnified be on a 60″ HD display. . . Once again, this will be a free update and will be available through a software update in mid-June.

Apple also announced that as of May 31st, you should be able to buy a Apple TV with a 160 GB hard drive, that’s 4x what it is now (40 GB for the math impaired.) The 40 GB won’t be going away though — you can still purchase the 40 GB version for $300 or spring for the 160 GB version for a pricey $400. $400 is starting to get expensive for this device, hopefully Apple will eventually abandon the 40 GB model and put the 160 GB drive in the $300 version. One can only hope.

Apple TV Press Release