Does the Apple TV work only on specific types of TV's?

We are thinking of buying a new TV, because our current one has 3 random huge red lines going vertically through it. Anyway, I was looking at TVs just a minute ago, and I remembered the Apple TV. Well, there's something called a "Smart TV" which means it can use the internet for Netflix, YouTube, Pandora, AccuWeather, etc. Anyway, I was looking at the Apple TV.
1) Does the Apple TV only work with like a certain size, company, type (ie HDTV, LTE or whatever, Plasma, etc), etc.?
2) Does the Apple TV basically make a normal TV a smart tv? Does it allow internet and all that easily? Also, when watching movies on the Apple TV thing, will it play full screen? Will this only happen on certain TVs?
Thanks!

No not any more then Xbox or playstations does

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