Not just the music, Google also announced a movie rental service via Android Market. Users will be able to choose their favorite movies directly from web or device based Market and watch for as low as USD 1.99.
The rented movies will available across the devices. You can watch the rented movies on the web or your Android device. Xoom users will be the first to get the service via the Android 3.1 update, which started rolling out tonight. Google will soon push an update for Android devices running on Android 2.2 or above to use the service as well.
This service also looks like US only right now, but will be available in other countries later.