The Apple TV 4K 32 GB is better because for one thing it's 4K UltraHD and has Dolby Vision and HDR10 and 10 + visual capabilities. It can also hold more cache and your apps for download (no it does not store your movies from iTunes-that's why you use the cloud or have them on a server or in-home streaming such as QNAP on HDDs internally on your local home network). This device is also better because of the variety of frame rates it can handle and project onto your screen (be it a 4K UHDTV with HDR capability or a projector screen). This Apple TV can also play all your movies using and Movies Anywhere, VUDU, Amazon Prime Video, and iTunes movies you've purchased that are available in 4K UHD HDR).