I wasn't surprised by the move; in fact I was wondering what took them so long. It's been quite some time since all the Android Market sold was Android apps. It really needed a new name.
Google added ebooks to the Android Market back in May 2011, Google started selling movies in the Android Market. And this year they started selling music.(13 months ago). So for the past year the "Android Market" has been selling ebooks which could then read on an iPod Touch. And then in
So really, Google Play isn't a bold move but a realization that Google has been a content retailer for some time now. It was past time to bring all the content together under a new brand.
I do wish they'd chosen a better name. Google Play is going to get mixed up with the search results for Google Reader Play, one of the lesser known features of Google Reader. (Guess which one ranks higher in the search results?)