AOL announced it will launch an expanded online video download and search service this week, just as parent Time Warner is expected to announce a restructuring of AOL, scaling back its internet access business and offering, for free, AOL email and other features of its currently for-fee services.

AOL's new video service will add several free programs when it begins public testing this Friday - and will also sell commercial-free downloads, competing with Apple's iTunes and Google Video, reports the New York Times. For now, it will sell $1.99 downloads from MTV Networks (e.g., "South Park"), A&E Networks and Warner Brothers, among other large programmers - but not yet from major broadcast networks. In the fall it plans to launch software to sell subscriptions to video programming.

Procter & Gamble, Kraft and Mercedes Benz are among the initial advertisers; the site will offer pre-roll and mid-roll ads and banners alongside the video player, writes ClickZ.

The new AOL Video is intended to be a one-stop shop, allowing users to search for videos across the web, upload their own, or buy or watch for free thousands of TV shows from some 45 video-on-demand channels, reports Reuters. The downloads would be viewable on nearly any device.

AOL plans to let other sites incorporate its video search technologies. Also, an area on AOL called UnCut will let users (as YouTube does) upload - via mobile device or computer - share and talk about their videos.