In case you missed the story on Google TV — or is it a rumor. We’ll have to wait and see.

Here is an excerpt from Tom’s blog:

However, my source said that the amount of bandwidth purchased could only mean one thing – video. Of course video could be just about anything. Is Google going to offer videoconferencing, video streaming, video-on-demand? Imagine if it is video-on-demand. Google can offer movies for paid download ala the iTunes model.

Of course, the pay-per-download model so far has only really taken off with music and not movies.For example, Movelink offers movie downloads for $1.99 – $4.99, and I’ve tried it myself, but it hasn’t taken off like iTunes has. One problem is the damn selection – it’s way too limited. I expect Movielink to have at least the same number of movies as NetFlix, if not more, since Netflix has to pay for the DVD costs, mailing costs, inventory, etc. Movielink simply stories movies as a digital file on hard disks and merely has to pay for bandwidth and hard disk storage. Maybe Hollywood still is uncomfortable even with DRM protections put into the movie digital files?