Google has updated the Android Market to offer books and movies that can be rented by mobile device owners.

The upgrade, which is currently only available to US users, could challenge Apple's iTunes and iBooks store which already offers music, movies, eBooks and apps.

Google has revealed movies will be priced from $1.99 and will be made available "selected countries outside the US" later in the year. Initially, the movies will be available to rent, although Google confirmed an option that would allow users to download the films for playback when there is no internet connection would be added in the future.

The new version of the Android Market is available to users of devices running Google Android Version 2.2 or above.