The updated iTunes apparently supports video sharing in some circumstances. I have a number of videos in my itunes library- mostly vlogs and purchased TV shows. One video- the latest episode of dl.tv in .m4v format (which I believe is some kind of non-h.264 mpeg4 compression in this case) is currently visible to other devices through my shared library. The other videos- all quicktime encoded mpeg 4 or 3ivx variants that are ipod compatible (indeed trying to encode them for ipod says that they are already compatible) are not visible ot the other devices. When I launch the video it buffers and then begins playing as though it were playing in my local itunes.
Ok, so today Rocketboom shows up in my shared playlist, but I can’t play it. However, DL.TV is still there, and I can stream it. Remember that despite the number of video files (including purchased iTunes Music Store videos) on my shared library, these are the only two that display.
This does not work in my home network. I thought perhaps it was because I had password protected my library on the machine I took the following pictures on. Not so. Have a look:
Here is an image of theDL.TV file streaming to my ibook. Click through it to see the full itunes window.