YouTube Close To Film Deal
An item in today’s New York Times (nytimes.com) indicates that Google’s YouTube is close to finalizing a deal with major Hollywood studios to offer their new release films for rentals.
Sony Pictures Entertainment, Universal Pictures and Warner Brothers have agreed to rent movies via YouTube, according to two studio executives who spoke on condition of anonymity because they said YouTube wanted to make the announcement. Rental fees are expected to be comparable to those charged by rivals like iTunes. YouTube declined to comment on reports of new rental deals.
“We’ve steadily been adding more and more titles since launching movies for rent on YouTube over a year ago and now have thousands of titles available,” said YouTube in a statement. Lionsgate Entertainment, the Weinstein Company and independent filmmakers already make films available for rent on the site for $2 to $4, including “Scary Movie 4,” “3:10 to Yuma” and “Saw.” The arrival of bigger Sony, Universal and Warner movies would give the streaming service a shot in the arm as it tries to compete with Apple’s iTunes, Amazon.com and Netflix. YouTube has been trying several strategies to keep people on the site for longer periods as it tries to poach viewers from TV and attract ad dollars.
Despite YouTube’s popularity — people view videos on the site two billion times a day — its film rentals do not appear to have gained much traction. The willingness of mainstream studios like Sony, Universal and Warner to finally play ball reflects the work YouTube has done to make its portal look less like an online video garage sale. The site has also made it easier for media companies to take down pirated video content.
Google’s stock (ticker GOOG) is currently trading today at $536.50, up slightly from yesterday’s close of $532.82
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