Last week, Google decided that they would be exiting the Video on Demand market. It wasn't much of a surprise, and is probably a good move for them in the long run. However, they ran into considerably flak over their refund policy, which many users felt left them in the dust. Particularly since Google was more apt to issue Google Checkout credit rather than an actual money.

Since many people were upset by the way Google handled the shutdown and issuance of credit, Google has responded to the outcry by offering something better. On the Google blog, they state they did not expect that sort of reaction, but want to appease those who felt wronged:

"... we thought offering the refund in the form of Google Checkout credits would entail fewer steps and offer a better user experience. We should have anticipated that some users would see a Checkout credit as nothing more than an extra step of a different (and annoyingly self-serving) kind. Our bad. Here's how we're hoping to fix things"
They are offering full credit card refunds, provided anyone who has their card information stored makes sure it is accurate. On top of that, they are letting anyone who already received Google Checkout credit keep it.

They also mention that the existing paid videos will remain for another six months - rather than being outright disabled now. This response may be a financial hit for Google, but they have done the right thing in responding to user outcry quickly and correctly, rather than making things worse.