Ever since the iPhone first came out, I waited for Apple to add this functionality to the iPod app, but today I discovered that there's an app for that. This app, combined with a server client that runs on your Mac or PC, allows you to stream videos from your computer to your iPhone/iPod Touch/iPad (it's even a universal app, so it has a nice iPad interface) over your home network and even over 3g, with almost no configuration.
The app even allows you to play video files that are in a format that the iPhone does not recognize by converting them on the fly on your computer. Air video also supports subtitles.
I did not make the app, nor do I know the people who did, but I have long desired this functionality and I am sure there are people like me who feel the same. The app is $2.99 in the app store, and there is a free version you could download to try it out (trust me though, its well worth the $3).
Here is a link to a lifehacker article about it.
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