On Wednesday, a report from the Wall Street Journal stated that Google-owned YouTube is planning a rental service for streaming movies, which would be the video-sharing site’s first ever paid service.
According to sources privy to the details of the planned service, the Web site’s owners are holding talks with several major movie studios, such as Sony Corp., Warner Bros., and Lions Gate Entertainment Corp., regarding the distribution of newer releases to the public through rentals.
The ‘Wall Street Journal’ reported, "Negotiations are continuing and there are no guarantees a deal will be struck.”
YouTube is known worldwide for its collection of amateur videos uploaded and contributed by its users and members. The Web site already has the license to show full-length movies and screen clips on its site; however, there is no charge for any of the Web site’s services.
YouTube has recently signed a deal with the U.S. media and Time Warner to show movie clips from the Time Warner-owned company, Warner Bros., with the two companies splitting the advertising revenue.
The California-based advertising and Internet search company Google purchased YouTube in 2006; however, despite the Web site’s massive popularity worldwide, the company has not yet seen a return on its investment.
Though the ongoing agreements may vary depending on the studio, the deal generally gives YouTube the right to exact fees from its consumers for renting out stream movies.
The newspaper said, "In some cases, these titles might be available on the site on the same day that they come out on DVD.” The Web site plans to charge consumers $3.99 for each new movie rental, the same price Apple bills its users for movie rentals through its iTunes service.
According to sources privy to the details of the planned service, the Web site’s owners are holding talks with several major movie studios, such as Sony Corp., Warner Bros., and Lions Gate Entertainment Corp., regarding the distribution of newer releases to the public through rentals.
The ‘Wall Street Journal’ reported, "Negotiations are continuing and there are no guarantees a deal will be struck.”
YouTube is known worldwide for its collection of amateur videos uploaded and contributed by its users and members. The Web site already has the license to show full-length movies and screen clips on its site; however, there is no charge for any of the Web site’s services.
YouTube has recently signed a deal with the U.S. media and Time Warner to show movie clips from the Time Warner-owned company, Warner Bros., with the two companies splitting the advertising revenue.
The California-based advertising and Internet search company Google purchased YouTube in 2006; however, despite the Web site’s massive popularity worldwide, the company has not yet seen a return on its investment.
Though the ongoing agreements may vary depending on the studio, the deal generally gives YouTube the right to exact fees from its consumers for renting out stream movies.
The newspaper said, "In some cases, these titles might be available on the site on the same day that they come out on DVD.” The Web site plans to charge consumers $3.99 for each new movie rental, the same price Apple bills its users for movie rentals through its iTunes service.
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