With movie streaming becoming more and more popular, it seems only a matter of time before video-sharing behemoth YouTube begins renting and possibly selling video-on-demand content.
A report on entertainment website The Wrap today suggests that YouTube will begin streaming movies from major Hollywood studios as soon as next week. Quoting executives from YouTube familiar with the situation, the report suggests that YouTube has been waiting to tie up all major studios before announcing the deal - but still has a number of deals to broker. Studios such as Universal, Sony and Warner Brothers have all signed up to licence their films to be rented or sold by YouTube but others such as Disney, Paramount and Fox are yet to sign on the dotted line.
Some other independent studios such as Lionsgate and Kino Lorber have also signed up. YouTube has commented on the report saying it has been renting movies for over a year, though these are smaller independent films rather than films from bigger studios. It failed to comment on the imminent announcement of a deal with major studios however. An online rental service would be pitching YouTube in direct competition with iTunes which currently has all the major studios signed up and has grown consistently since launching in 2008. It is believed that YouTube won’t be offering a subscription model seen with Netflix and LoveFilm on this side of the world.
We wait for official confirmation regarding this proposed move by YouTube, but considering its position as a leader in online video, it seems to us a smart move going into the lucrative video-on-demand market.
Source: The Wrap