Popular video streaming app, Air Video has just received an update to provide AirPlay functionality under iOS 4.3. The stock Apple TV just became a whole lot more interesting with this update and here is why.

Currently the Apple TV has very limited support for video file types. If you have your media stored on a Mac or PC in any other format than mp4, mov or m4v, the Apple TV will not play it. Using Air Video on an iOS device you can watch nearly all video file types stored on your Mac or PC with the clever transcoding software. Air Video streams your content over WiFi to your iOS device. The file conversion is all done on the fly. Now with the AirPlay update for Air Video, this can now be sent onto your Apple TV or any other device that supports AirPlay. That’s right, AVI files MKV files and many more.

It is an extra step that shouldn’t be necessary; we would like to see apps on the Apple TV like AirPlay to remove the need for the intermediary iOS device. Until that happens though, this is a great way to open up the Apple TV to your non Apple formatted videos.

The AirPlay improvement has to be the most important update that iOS 4.3 will bring to the table; it will be available this Friday. What features are you looking forward to with iOS 4.3? Let us know in the comments!

[$2.99 - iTunes Link]

This post may contain affiliate links. See our disclosure policy for more details.