Apple TV3 Video compression:

I am about to get Apple TV3 (I currently have ATV 1)
With the ATV1 I have to seriously compress my Home Movie files to get them to work. I make my videos with Final Cut Express in full HD, 1920x1080 so the appeal of ATV3 is that it can handle full HD.
However, I realise from reading this forum that I will have to convert my movies for ATV3 and I have done this as a test on one file, converting in QT Pro.
The video converted as 1920x1080 but the file size roughly halved.
My question is: Will I be losing any meaningful quality? What is being lost from the original file?
Hopefully someone out there knows...

Thanks "Winston" but I have to disagree.
First, Handbrake is not cheap, it is free.
And having bought the Final Cut Suite since the beginning, as well as the current Compressor, I find it a real pain to use and clearly cannot see any advantage in using it over Handbrake for compressing home movies for an Apple TV.
And if money is no issue andyou want the best possible quality for an Apple TV3 output, FCP X's H264 export option is certainly the way to go.

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