YouTube looking to add online movie rental on demand
Google’s YouTube is still struggling to turn a profit while ads are becoming more and more obtrusive. Movie studios are warming to online video streaming due to a weakening DVD market and a growth in streaming culture. Seems like both sides need each other. That’s what YouTube thought, so they’ve gone to several Hollywood studios to work on a streaming deal.
Studios in talks include Sony Pictures, Warner Bros., MGM, and Lionsgate. Each of these studios streams video through other channels, so it seems like they would approve of YouTube’s extremely large user base.
Video on demand rentals would be about $3.99 each, similar to iTunes pricing. 70% of this would go to the studio, and 30% to YouTube. We already have HD video from youTube, so I would expect a second tier pricing for high definition video.
With YouTube already embedded in many new HDTVs, many users would already have access to this new service which should start rolling out in the next several weeks.
First reported in Wall Street Journal.