The first screen allows you to easily select your library contents (Music, Movies, etc) then display them by their attributes (Songs, Albums, etc). From here a smooth switch can be made to the iTunes store to purchase new media.
As usual everything is in the iCloud, and synchronises to you devices (iPads, iPhones).
Airplay seamlessly allows media to be streamed to Airport Express (analog audio) or Apple TV (digital audio and HDMI video). All wonderful and smooth - well done Apple.
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