Mac Mini Now Starts at $1,099 After Apple Pulls 256GB Model
The base configuration of the M4 Mac Mini now supports only 16GB of RAM and 512GB of memory.

The update is available for download at the Apple website, as well as the software update feature of your Apple TV.

The update is necessary to take advantage of iOS 5 features such as AirPlay mirroring and Photo Stream.
Apple recommends, via its support page HT5021, that users reset all settings on their Apple TV prior to updating. To do this, go to Settings > General > Reset > Reset All Settings.
[9to5Mac]
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Well, it needs an update so that the new application and the system will work as one. Apple Tv has been in the market for several months now.