A new rumor sprung up based on some ads that appeared on an iPhone App called Twitterfon. Apparently these mobile ads feature iTunes Movies, iTunes Movie Rentals, and iTunes TV.
This leads to the assumption that Apple will allow over the air downloads of movies and videos to the iPhone.
See several screenshots of the new service on KwameJones Blog. Via Techmeme. Digital Daily has a link to iPhone iTunes Video interface, which seems to still be under development.
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