Video Streaming
Air Video can stream videos in almost any format to your iPhone and iPod touch. You don't need to copy your videos to the device just to watch them.
Live Conversion
If the videos in your collection are not in format supported by iPhone, Air Video will convert them on fly*. You don't need to wait until the entire video is converted. You can start watching it almost immediately!
* Live Conversion requires iPhone or iPod touch with firmware 3.0 and a sufficiently powerful computer (Intel Core 2 duo or equivalent processor is recommended).