YouTube plans online movie rentalVideo-sharing website in talks to offer movies

04 September 2009

Google-owned video-streaming website Youtube is in talks to offer film rentals via the internet, according to reports. 

YouTube is massive popular thanks to its huge range of free video content, most of which consists of short clips uploaded by ordinary internet users.

However, reports in US business paper the Wall Street Journal reveal that YouTube is talking to a number of entertainment companies including Sony, Lions Gate and Warner Bros. about a potential deal that would give users the chance view the latest movies for a rental fee of $3.99 (£2.45).

YouTube movie deal?

Initially, the service is for the American viewing audience only although a move towards pay-per-view content is seen as an obvious move for video-hosting sites to increase their revenue. UK-based Blinkbox already offers a mixture of free and paid-for content. 

Despite its popularity, YouTube has yet to turn a profit. It could also be a way for major film producers to supplement their revenue via online sales at a time when revenue from DVD sales is falling.

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