According to the folk over at Download Squad, some developers are currently able to upload demonstration videos for their apps in the Android Market. The feature isn’t currently available for end-users to view, but the videos can be found using the Market API, meaning sites that search the Android Market like Appsfire can pull these videos up for viewing. You can check out an example for Twidroyd on Appsfire to see what we mean.
There’s no news on when we can expect these videos to pop up in Android Market listings, though we can say they’ll only be able to be played back in 240p and 360p to save bandwidth.
Source: Download Squad.