Five Ways YouTube Can Make Rentals Work

Rumor has it that Google is working on a possible deal with Hollywood studios that would give YouTube a streaming rental store. The idea is makes sense, as YouTube has, far and away, the biggest audience for online video, and Google needs to monetize in other ways besides advertising. But, if a YouTube rental system is going to work, it has to be done right. Here are five ways YouTube actually might persuade me to pay for its content.

Let Me Watch on TV, Please

Try to watch premium content on the TV-optimized YouTube XL, such as classic episodes of Star Trek, and you'll come up empty. That's because content owners don't like the idea of people using YouTube on their televisions to replace cable and movie purchases. But if I'm going to pay for a video, there should be an easy way play it on YouTube XL.

Give Me a Reason to Stream

I'm not convinced that paying for a streaming video file is better than buying a download. It's nice to be able to watch instantly, but what happens if my Internet shorts out, or if YouTube is running slow? Perhaps YouTube rentals should have a longer viewing period than its downloadable competitors, or some sort of money-back guarantee when the tubes are clogged.

Undercut iTunes

Why not? I know the Wall Street Journal story says YouTube will likely stick with the standard market price of $4 per video, but it's an inferior service. A potentially blurry, choppy and low-resolution video isn't worth the same price as something you can download from iTunes and take with you for, say, air travel. Knock down the price and I'll consider it.

Don't Kill the Free Stuff

Right now, YouTube has a selection of free movies, including Supersize Me and Night of the Living Dead. These are generally old releases that aren't wildly popular, so there should be no reason to squash them when the paid stuff comes around. Free movies could even be a great promotional tool for related paid content.

Don't Kill the Community

When YouTube started introducing TV and movies from networks and studios, the "Broadcast Yourself" community was wary that they'd be snuffed out. So far, that hasn't happened, as user-uploaded content remains front-and-center on the site. Please, YouTube, don't change that if there becomes a little extra money to be made.

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.