A week back Microsoft stated that the update will be available in a few weeks and listed features that would be introduced with the update. New features added in version 4.5 are:
- Expanded Video Codec Support: Zune will now play Xvid and AVI files without you having to transcode your videos before transferring.
- Picks: Picks is a music discovery and recommendation service that will come to the Zune device and suggest content from the Marketplace.
- Stream Zune Content on Television: You can now enjoy your Zune content on the device and the Marketplace on the big screen, Microsoft has added support for streaming and browsing Zune Marketplace content on the television via the Zune dock.
The additions make the Zune HD quite a lucrative purchase. Being able to stream music videos from the Marketplace and device as well as support for popular video formats like Xvid and AVI would definitely make life easy compared to the alternative.
The Zune team has posted a video demonstrating some of the new features on their Youtube channel: