From Google Mobile Blog,
In the U.S., you’ll be able to rent thousands of movies, starting at $1.99, right from Android Market on your phone. With the Videos app, available in Android Market, there’s no more waiting for downloads, syncing, or worrying about storage space. Simply sign into Android Market with your Google account, and you can rent movies from anywhere – the web, or your Android phone or tablet – and start watching instantly. You can also download movies to your device so they’re available for viewing when you don’t have an internet connection.The new Android Market will be rolling out in the coming weeks to Android 2.2 and higher phones around the world. You don’t need to do anything - the update is automatic on supported phones. If you’re in the U.S., you’ll also be able to download the Videos app, rent movies, and buy books once you receive the new Android Market.
Also in the U.S., you can now purchase books from Android Market on your phone. Like movie rentals, books are linked to your Google account, so they’re instantly available across all of your devices – computer, phone, or tablet – without the need for wires or downloads.
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