I would for an inexpensive alternative the Apple TV works great and sounds great streaming music in AIFF or ALAC with no glitches. It streams HD movies well as well. Hopefully one day it will be able to stream movies with the new audio codecs.
Here you go
Play any movie from your Mac on Apple TV
Beamer is the AirPlay Video Player for Mac. It supports many movie and subtitle formats, so you don't have to convert your videos to an Apple TV compatible format. Simply drag-and-drop a movie on Beamer and it will start playing on your Apple TV!
Unlike Screen Mirroring, Beamer is specifically optimized for video playback at the highest quality. What's more, you can pause, forward and rewind using the Apple TV remote. No need to get up from the couch.
All common movie formats (AVI, MP4, MKV, etc.), codecs and resolutions up to 1080p are supported. Non-h.264 video is transcoded on the fly. Subtitles are supported, both embedded subtitle tracks and external subtitle files. Supported formats are SSA/ASS, SubRip/SRT, SubViewer and MicroDVD.