iTunes video streaming on the way?

Apple is working on a video streaming solution for people who don’t want to store the bulky files on their hard drives, an anonymous film industry source tells CNet.

We’re in borderline rumor territory here, as the source simply confirms an earlier report by AppleInsider that sources no one in particular, but it’s at least worth mulling over.

The service will reportedly be called iTunes Replay, available for iTunes 8, and will stream movies and videos to any web-enabled device. Video content will be stored on Apple’s servers, available whenever the user wants. The reports say nothing about pricing or a release date.

But as Greg Sandoval at CNet points out, such a service could result in a lot of work and expense on Apple’s end for very little in return. After all, TV and film studios will probably require licensing and compensation. A streaming service could also play well with Apple TV by cutting down on hard drive usage, but it may not be worth all the hurdles that the video industry puts forth.

That doesn’t mean it’s a bad idea. I’m stingy with hard drive space, and the fear of purging downloaded movies to make room for more has certainly been a barrier to entry for me. Besides, the idea of "owning" a stream for use from anywhere is enticing, even if its not the kind of thing that TV and film studios love.

Of course, Apple won’t comment to CNet, so just keep this news on the backburner until something more official comes along — or doesn’t.