Canada's National Film Board just released a free iPhone app that lets you stream over 1,000 movies to your phone, also for free.
Now, here's the caveat: the NFB is best known for producing documentaries and animated shorts, so don't expect any David Cronenberg features. Also, the current list of 1,000 movies is only about one-thirteenth of the complete NFB catalog, so here's hoping they make more available as time goes on.
On the bright side, you can either stream a selected film in real time, or download to your iPhone to watch later (within twenty-four hours). And if you're open-minded and/or a hard-core film geek, half the joy of the app will be discovering little cinematic gems you might have otherwise never gotten the chance to see.
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[Download from iTunes]