TUAW reports: [edited]
Crackle, from Sony, is a free universal iOS app that's built to stream free-to-view movies and TV shows. If you don't mind ads at the beginning and more in the middle of the programs and you're OK with the app's limited selection, it's worth a look.
There's a smattering of good movies (The Gods Must Be Crazy and It Might Get Loud, for instance) and then there are a slew of Godzilla movies and martial arts movies that may or may not strike your fancy. The catalogue includes old Three Stooges shorts, and TV shows like Seinfeld.
There are some nice features: closed captioning and AirPlay are both supported, and when you leave the app and come back your movie will resume playing where you left off. It worked well over 3G, and the films are licensed for Canada and the U.K as well as the US. Quality of the prints was good, as it should be from an app provided by a movie studio.