Video site YouTube, which has generally relied on advertising to make money, is in talks with major studios including Lionsgate Entertainment, Sony and Warner Brothers, about offering full-length movies for a rental fee, the New York Times reports, citing sources.
A deal would put YouTube, by far the largest online video site, in competition with Netflix, Amazon and Apple’s iTunes, which already offer films for purchase or rent. As studios have seen DVD sales slow, they have been more willing to discuss putting films online.
The concept is deja vu all over again for YouTube owner Google. Before it purchased YouTube, Google Video streamed some movies and TV shows.