GoogleVideo-tm.jpgJohn Battelle has the scoop: “I’ve confirmed that Monday Google will launch an in-browser video playback feature based on the open source VLC media player. This is the logical next step for Google’s video search and upload function, which began taking uploads from anyone who cared to submit back in April.”

Battelle says it will be related to the Google payment program, and that it “is clearly a shot across Microsoft’s bow.”