HT4437 i want to air play and apple tv in one device. Is that possible

I am finding it all a little confusing.  I like the functionality of the airport express but wonder if the apple tv device allows the same with music and also adds the option to display on the tv?
I currently use an ethernet connection to link my SONY internet tv to my broadband.  I watch iplayer and lovefilm on the TV.  I want to be able to use Airplay to link my itunes via my iphone/ipod or ipad to the AV system.  I have phone connections and optical connections on my AV system but not ethernet or Airplay.
Can I use the apple TV to act as both the video display, keep my options to watch internet TV but also added options around the Apple TV AND with the same device connect the optical link to my AV system and enjoy itunes music?
Thanks

the appletv will work with airplay audio and airplay AV
the appletv will connect to the tv using hdmi and optical for audio if you want
the appletv when connected by hdmi does not remove other features from your setup it does not have the power to block your current options to watch internet tv unless you don't have enough hdmi ports

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