“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,” Prince McLean and Kasper Jade report for AppleInsider.

“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,” McLean and Jade report.

“One of the main complaints users have with video purchases on iTunes is that they are forced to either throw away their files after watching them, or find a place to store the large files either on their hard drive or by burning them to DVDs. By storing their video content for them and allowing users to stream it for viewing as often as they want, Apple would essentially be offering a media center alternative,” McLean and Jade report.

“The iTunes Replay service could also improve the experience of the company’s Apple TV set top box, allowing users to stream purchased media directly from Apple’s servers without ever syncing or copying files between Apple TV and a computer running iTunes, and without filling up the devices’ limited hard drive space,” McLean and Jade report.

Full article here.