SnagFilms is a free, universal iOS app that brings hundreds of independent films to your iPhone, iPad or iPod touch. You search by category or title. SnagFilms offers a nice collection, and I even found a pair of documentaries about Apple.
The app is ad-supported, so you'll see an ad before your movie begins and at least another during the presentation. I understand the need for advertisements, but SnagFilms presented the same ad repeatedly, which detracts from the experience.
I use SnagFilms to watch Macheads and a documentary about the race to the moon on my iPad. The quality of audio and video was fine. The developers say they are adding new films all the time.
You can't save movies to a queue unless you provide your Facebook login, which I find an irritating trend in several apps I've used recently. I don't think having a Facebook login should be a requirement to fully use this app. Movies can be watched without a Facebook account or login.
The app supports AirPlay. Although you can watch movies on a 3G connection, WiFi is recommended, and indeed when I tried it on a 3G network there were frequent pauses and once all I got was audio.
Still, SnagFilms has a collection of films you may not find anywhere else, and if you can put up with the repetitive ads I think the app offers a lot for no expense. There should be films for every taste.
SnagFilms requires iOS 4.3 or later. It has not been optimized for the iPhone 5.