AppleInsider has confirmed a new rumor from some people who are part of the staff  of AppleCare. It seems it will be possible to download and play movies & Stream them as well on the iPhone 3.0 Firmware.

This has been confirmed by source much dependable that apple is training its support for these upcoming features. Movies will be streamed over the wi-fi & downloaded over wi-fi. Lets wait and see how this new feature pans out once the 3.0 is out.