I install rtorrent on the droplet, and open the torrent (which I scp onto the box) or magnet.
apt-get update
apt-get install rtorrent
rtorrent file.torrent // use ctr + q to quit
Then I
ssh user@host cat movie.mkv | mplayer -
on my laptop. I use an existing droplet most of the time, however you could easily set up a new droplet each time with tugboat for example - you don't need to install anything extra or do any more setup after rtorrent for this to work. Although you should use .rtorrent.rc if you're going to be doing any serious torrenting, you can just get away with running rtorrent in screen if you want to seed for a bit.
This works fine for most usage cases, however you can't go forwards/backwards in my experience, and the stream will fail if you experience network issues - you'll need to download the whole thing from your droplet to your local computer if that happens.