RUMOR: Apple May Offer Streaming in iTunes

"Apple is believed to be wrapping up a new feature in iTunes 8 that will allow users to stream their iTunes video purchases directly from the company's servers for playback anywhere, anytime without eating up local storage. Dubbed iTunes Replay, the service would allow iTunes shoppers to build out their digital video collection without worrying about the space needed to store the often hefty media files. It's unclear whether Apple plans to charge for the service, which is said to support both iTunes Movie and TV show purchases."

If this is true, it would be pretty darned cool.  I want to own my music, but for the most part, I don't keep movie downloads after I watch them.  That's why I love Netflix's Watch Instantly on my XBox 360 so much; no commitment to keeping movie files.  Apple could easily pull this one off, but I imagine the big stumbling block will be getting the studios to cooperate.  Isn't that always the way it is?