It looks like Apple is working on a video streaming service called iTunes Replay. The reported service will store purchased videos up in the cloud so you can access and stream the media to multiple devices. 

The company has never really made their big move with AppleTV. Maybe they were too distracted with iPods and iPhones, or just patiently waiting for the right time. Whatever the reason, they tripled sales of AppleTV last year so they know the demand is there. We also know that cloud computing is something Apple is interested in. The launch of the MobileMe service, although a bit of a rough launch, was a sign that they were looking to the clouds.

Storage and streaming makes perfect sense to me. Not only will it save me hard drive space, but my media will be better organized and more accessible.  Downloading files seems so 2006, I'm over it. [via ZDNet]