Google just announced that they’re close to launch an on-demand video service. People will be able to buy and rent videos right from the web. They will partner with CBS and the NBA to deliver recent content.

There are no much infos about the technical details. Apparently content will be encoded with Xvid and will use a in-house DRM system. The Google Pack, a software package distributed for Windows XP will feature the RealPlayer but a lot of people are doubtful about its use.

Apple and iTunes were the ideal candidates for video on-demand business. The MacWorld Expo starts tomorrow and will feature of lot of announcements from Apple. Rumors talks about hardware and software but nothing about a video service in the Music Store.

The battle for content has just begun.