Thank you. I finally figured this out. I think the confusion was due to the particular Apple article I read.
Now I'm trying to understand the new streaming functionality in iTunes 11. In some places I am told one can stream videos bought from iTunes, though the actual video in iTunes says you can stream music from iTunes and stream video from Apple's TV device. Does anyone here know if you can stream video downloaded from the store through iTunes? I'm particularly interested in whether it can be streamed to an iPad.