It's been going in the US for several months, and now Apple is rolling out Movies in iCloud to other countries including the UK and Ireland saving you valuable storage space on your iOS device.
It means you don't have to store iTunes-purchased movies on your iPhone or iPad. You can now redownload them at any time. In the iTunes App select "Purchased" tab along the bottom, then hit the "View:" button in the top left of the screen and select Films (or Music or TV Series. There's also the option not to download them at all but simply stream them when you want (and when you have a WiFi or good data connection).
Other countries the feature is now available in are: Australia, Canada, New Zealand and some South American countries.
It seems the service is still be rolled out and may not yet work properly for some, with users reporting not all purchased movies yet available.
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