The online video streaming giant YouTube is in talks with top Hollywood movie studios about streaming movies on a rental basis.
The move might be seen as a shift of business model of the video streaming giant, which is still struggling to generate significant amount of revenues. However, the new business model could not break the mold of other online rental deals already struck by iTunes, Amazon.com Inc. and Cinemanow.com. If YouTube can persuade its users to pay for premium contents it is going to offer, it might not regret it.
The success of the talk, however, depends on various other issues like release date of titles, lucrative revenue deal and anti-piracy measures.
According to sources if Google can offer a secure way to stream these movies over the Internet, and offers a lucrative deal other then sharing just a percentage of ad revenues then ther is no reason why studios shouldn’t tie up with YouTube.
But, whatever, the deal may be, the ultimate question remains. Whether users will pay for premium content or not?
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