Google moves on to online video store sphere

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: Google Inc. said that the company is expanding into two new fields with an online video store and a computer maintenance service, moves that mark stepped-up challenges to its biggest rivals, including Apple, Microsoft and Yahoo.

Google Co-founder and President Larry Page said the video marketplace would offer free programming, low-cost rentals and outright purchases of premium entertainment and sports shows ranging from episodes of Star Trek to every National Basketball Association league game online, for the first time.

Page also introduced a plan to offer any user of Microsoft Corp.'s Windows XP-powered PCs basic software, security and Web features on both new and existing machines. With the product, called Google Pack, the company will help most users set up and maintain their machines in a matter of minutes rather than the hours that many computer users require to get going on a new PC. “Google Pack is exciting. It’s as easy as going to the Google home page,” said Page.

“This is a challenge to Microsoft: Google is saying we can manage the browser and other elements of the computer desktop experience better than what you get now,” Forrester media and Internet analyst Josh Bernoff said.

Google said it will rent and sell television programs from CBS Corp. and the NBA. CBS plans to offer three current programs, including Crime Scene Investigation, for rental a day after they air, priced at $1.99.

Another 300 ‘classic’ CBS shows such as I Love Lucy, The Brady Bunch and Star Trek will be offered for download and outright ownership for the same $1.99 fee. Other partners include the historical video archive of Britain’s ITN and selected Sony BMG videos. Time Warner is expected to participate in the video store as part of a recently expanded search and advertising deal, Google CEO Eric Schmidt added.

The significance of the video store is that it marks one of the first moves by Google to begin charging users of its services beyond search-based advertising sales, which drives 99% of company revenues.

In its most overt slap at Microsoft, Google has named a set of preferred software, security and Web service providers that will be part of its recommended PC set-up.