Reducing size of iTunes movies for iPhone

Does anyone know how I can reduce the size of a movie purchased from iTunes before adding it to my iPhone? Movies I rip myself (from my own DVDs of course!) can be made quite small, but those iTunes beasts...well they're just chewing up my iPhone space.
Any suggestions? Mac OS X 10.5.8, iPhone 3G, and iTunes 9.0.1
Thanks!

Unfortunately, movies purchased from iTunes are protected by DRM methods and can't be compressed or transcoded without bypassing the DRM. Commercial video apps don't process protected media and discussion of methods that remove DRM is prohibited in this forum.

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