
Once the Apple TV is connected to your TV and showing the setup screen, you just unlock the iOS 7 device, making sure that Bluetooth is enabled and you're connected to the Wi-Fi network that you want the Apple TV to be connected to. You then touch the iOS device to the Apple TV, after which prompts appear on both the iOS device and Apple TV.
After entering your Apple ID and password on the iOS device and answering two simple questions, the configuration of the Apple TV takes place. It's connected to your Wi-Fi network, activated, and is set up with your iTunes Store account.
It's a fast and easy way to set up the current Apple TV and hopefully any new devices that may be released by Apple in the future.