I don't like the idea of Google renting videos. It just sounds stupid. I like the idea of them building cheap pc hardware with a user friendly OS, but renting videos doesn't seem to be Google's cup of tea. Then again, who knows?
Ya know, I think the renting videos is a great idea. Their strength is their information. This would be an addition. Watch streaming movies at Google's lightning fast speeds. It fits into their area of expertise. This is what they do best (information) and I think they are smart enough to recognize this.
They're probably gearing up for mobiletv, the next revolution in handsets. It makes sense that if you are going to watch tv on your mobile you could rent a movie to watch and pay for it using your mobile network.
A ton of news sources have "confirmed" it... with the official announcement coming tomorrow. http://www.forbes.com/2006/01/05/google-cbs-video-cx_tm_0105video2.html
Google is to start selling video online, offering a way for people to search for and buy TV shows and more through its site......... http://news.bbc.co.uk/1/hi/technology/4589884.stm
It should be a big hit when they open. Pity only the big companies like this have the capital to go into this kind of venture