Google who have been tinkering with the Youtube good example for months trying to wring out some profits are now trying to persuade its millions of users that paying for premium streams could be a good idea.
On the other side over in Hollywood, this development could help stem the tide of shrinking DVD gross sales and topping up the loss with online revenue.presently a few studios are streaming smaller and older movies via YouTube. But now YouTube is in discussions with Lions Gate, Sony and Warner Bros about streaming brand new movies. It has been suggested the streams may be available on the same day as the dvd release.
Other companies that let users stream or download newer movies include Apple, Amazon.com and Netflix, while Sony’s Crackle and Hulu allow users to stop older full-length movies online for free.
The Hulu LLC joint venture and Sony’s Crackle allow users to watch full length movies free, but don’t generally include new releases. Hulu is a joint venture of General Electric Co.’s NBC oecumenical, News Corp. and Walt Disney Co.
YouTube began as a collection of funny and home made videos, but it has become increasingly proactive in devising deals to host tv shows and movies as a means of attracting advertisers and viewers.
Hollywood has also been eager to distribute more of its films online — as long as it can collect a sane fee. Though many studios now sell and rent movies online through services such as iTunes and Amazon.com, that has yet to produce meaningful revenue. By cutting a deal with YouTube, which had all but 428 million global visitors in June, according to comScore, it can possibly reach a much wider audience.
The parties involved are still negotiating how to impart revenues from the new deal, YouTube is thought in all likelihood to give partners the majority of the revenue, as it has done with other setups previously. Some deals may also guarantee the studio a minimum fee per style viewed, in some cases just under $3, according to reports.
YouTube also wants users to stream movies on mobile devices, but some of the studios are not playing ball, which is strange as iTunes allows this with rentals. It is reported that 10000 Google employees will use the service as a test over three months.
Of course online tv fans want a collection of good free content. Live Internet tv sales are rising and viewers are prepared to pay for premium streams which Youtube obviously know.