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Thursday, September 3, 2009

YouTube in talks for streaming movies on rental basis: Report

NEW YORK: Google's video sharing site, YouTube is in talks with major hollywood studios for streaming movies on a rental basis, says a 

media report. 

Streaming movies are generally those where the user does not have to download the file and the content over the internet which is displayed in real time. 

"Google's YouTube is in discussions with movie major studios for streaming movies on a rental basis, a test of whether the online video giant can persuade millions of users to pay for premium content," The Wall Street Journal said. 

For Hollywood, the move could represent a bold attempt to offset its dwindling DVD sales with online revenue. 

If YouTube talks bear fruit, viewers for a fee might be able to stream hit movies, perhaps as soon as they are out on DVD. 

The report said that YouTube is talking to Lions Gate Entertainment Corp, Sony Corp, Metro-Goldwyn-Mayer Inc and Time Warner Inc's Warner Bros on charging for new titles on the existing YouTube site. In some cases, these titles might be available on the site on the same day they come out on DVD. 

Some studios already make full-length movies available on YouTube free, though they tend to be older and lesser-known films. It is unclear to what extent older movies or television shows would be a part of the new agreements, it added. 

While details vary from studio to studio, the agreements would allow consumers to stream movies on a rental basis on fee. However, in some cases, the movies could be available in way that they have been previously--free, with advertising, the report noted. 

Attributing to people familiar with the matter the daily said that negotiations are continuing and there are no guarantees the deals will be struck. Many details remain in flux, including whether users will eventually be able to download movies. 

YouTube, which had nearly 428 million global visitors in June, as per comScore, can potentially reach a much wider audience. 

The new movie rentals are likely to be around USD 3.99, the price Apple Inc's iTunes Store charges for new movie rentals. The companies hope to keep pricing on par with what consumers pay for video on demand for new titles, the report said citing these people. 

Quoting a YouTube spokesman the WSJ said, the company is always working to expand on "its great relationships with movie studios and on the selection and types of videos we offer our community." 

The report said Google was supposed to start the test service at the beginning of September for a period of three months but was pushed back as studio negotiations dragged on.

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