Google announced an update to its Android Market handset app, which will see US customers able to rent movies and purchase ebooks from handsets, creating an integrated content and apps proposition more akin to that of Apple’s iTunes store. The company said that movies can be rented “from anywhere – the web, or your Android phone or tablet,” with an offline viewing mode supported for use without an internet connection. Books will be linked with customers’ Google accounts, so that they are available from PCs, handsets and tablets. The update also features some improvements to the way that apps are displayed, adding “more space to feature some of the most interesting content of the week on the home page,” and with more charts and content selections also available. Some observers have criticised the limited availability of the new content, which is only available to US subscribers, with the new Android Market app only running on devices powered by Android 2.2 or above – it was also suggested that not all handsets running this platform will be supported.

Earlier this week, Apple Insider reported that  a Deutsche Bank analyst had said that Apple customers have spent an average of US$100 on content for their device, meaning a decision to move to a different handset type can be costly and time consuming – resulting in customer loyalty that is “unparalleled.” This customer tie-in will be strengthened by the launch of new Apple services such as iCloud, which will also be tied to iOS devices. This was echoed by recent research from Kantar Worldpanel, which said that “Our data shows that Apple and Android’s customers are intensely loyal when choosing their upgrade. One reason for this is the investment consumers make in their device through apps.” By increasing the reach of its content portfolio, it will be possible for Google to increase its Android customer lock-in, even if customers opt to choose a device from another handset vendor.