Android users can now watch movies they've rented from the Android Market right on their phones, thanks to an update to the company's Videos app.

The Videos app will play rented movies on smart phones running Android 2.2 (Froyo) or 2.3 (Gingerbread). It should work on more than 80% of Android handsets, according to Google's statistics.

The movie rental feature, which was previewed at Google I/O in May, will work on both tablets and smart phones running Android, whereas previous it only worked on some Honeycomb-based tablets.

Movie rentals through the Android Market start at $1.99. Once a movie has started player, the user has 24 hours to watch it before the rental expires. Rentals can be saved locally to the phone for offline viewing. The app also enables you to watch other videos, such as ones you've recorded yourself with the phone's built-in camera.

This update to the app also includes the usual bug fixes and minor improvements.