Movies on iPad and iPhone.

Evening all. I'm wondering if anyone can tell me if I'm missing something with the streaming feature in iOS7. If I go to the videos app I can see all of my purchased movies and TV shows. I can select anything to play and it does so just fine without buffering, in other words I don't have to download the content before being able to watch it. However if after viewing the movie or TV show I go to usage it shows the movie or TV show as occupying memoery. I can obviously delete it and in fairness this isn't much of an issue for me, I'm more curious than anything as a lot of people seem to have the ability to stream without this issue, where as others seem unable to stream alltogether. Both my iPhone and iPad are running iOS 7.1.1 although this has been the case with every version of iOS7 released. My Macbook Air which I am still very new to seems to stream without any form of downloading.

iTunes does not stream.
You are downloading the video.
After a sufficient amount has downloaded, you can begin watching it.

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