Larry Page announcing Video Store at the CES.

Announcing the company’s new Video Store at the CES in Las Vegas on Friday, Google Co-founder and President Larry Page said it would offer free programming, low-cost rentals and purchases of premium entertainment. This would include sports shows, episodes of Star Trek and every NBA league game online, for the first time.

Page announced Google will rent and sell television programs from CBS and the NBA. CBS has plans to offer three of its current programs, including the internationally popular CSI, for rental a day after they go out on air. The price mentioned is $1.99.

Yahoo News Reports: “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 eventually participate in the video store as part of a recently expanded search and advertising deal, Google CEO Eric Schmidt added.”

The move marks a major change of policy as Google begins charging users of its services beyond search-based advertising sales. Search ads currently drive 99 percent of the company’s revenues.

Google executives denied that it had plans to enter the computer business, scotching rumors that they would launch a PC costing as little as $100-200. Initially, Google offered only Web search. That has expanded to include desktop search, communications, video and an ever broader array of software offerings, the company said.

Longer term, it seems clear that Google is trying to tie up the IP-TV business, for which it has overwhelming credentials. Google can use its “local” data to serve person-specific ads in the middle of mainstream programming. With its growing access to all our personal data, the company will soon be able to do this worldwide.

The “dark fiber” buyups, the shipping container data centers, all point this way. By cooperating with the Telcos on easing the last mile, while not competing with them (eg Comcast), and adding the “personal” element to TV, Google will have a business that revolutionizes the Internet and MSM. The beauty of this is that it leverages its core businesses: search and advertising.