Monday, August 30, 2010

Google in talks with major studios to rent movies via YouTube

The Financial Times is reporting that Google is in talks with major Hollywood studios to bring streaming movie rentals from their catalogs to YouTube by the end of the year. Citing multiple sources with knowledge of the plans, the FT claims that the YouTube on-demand video service will probably launch first in the US, and will offer movies, simultaneous with the DVD release, for about $5.

The movies won't be downloadable, so you'll need a live Internet connection to watch them. But the lack of a download capability isn't as big of a deal as you might think at first. The recently launched Google TV platform, which brings YouTube directly to Internet-connected televisions, presumes a constant Internet connection, so the rumored streaming rental model is a perfect fit for it.

Unbeknownst to most users, YouTube has actually been offering streaming movie rentals from a number of smaller studios since January. YouTube then began quietly expanding the service to a wider number of content partners, adding not just indie films but some major movie releases to its catalog. What will launch later in the year, then, will presumably be a version of the service with most or all of the major studios on board.

The FT's story comes at a time when Apple is set to make a major music-related announcement next week, amid rumors of an A4-based AppleTV built around a new streaming platform.

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