Reflector 2 is an entirely new product. It’s got a ton of new features including Google Cast mirroring support, an all new control menu, YouTube live streaming, iOS 9 and 10 support, enhanced device layouts, voice-over recording and the iOS companion apps, Reflector Director allows remote control of Reflector 2 (https://itunes.apple.com/us/app/reflector-director/id974747588?mt=8) and Reflector Student aids in discovery on complex networks while allowing one iOS device to view others that are being mirrored to Reflector (https://itunes.apple.com/us/app/reflector-student/id1002083080?mt=8). Reflector 2 is much more than just a basic, free update. You can read all about the new features of Reflector 2 here: http://www.airsquirrels.com/reflector/features/
We have provided numerous, free functionality updates to Reflector for several years, and we stopped offering Reflector 1 for sale before the official release of iOS 9. Because of the new technologies, features and functionalities, the price for Reflector 2 is $14.99 for a single seat license.
The original release of Reflector will continue to function as normal with devices running iOS 8 and lower. However if iOS 9 or 10 mirroring is something that you need, then we encourage you to look into testing Reflector 2. You can find a 7 day free trial of Reflector 2 at http://www.airsquirrels.com/reflector/