Global YouTube video rental service planned by EOY: report

YouTube is great, but even with a nascent video rental site, it's not really a video rental powerhouse. That could change, if Google's negotiations with movie studios pans out.

Service would drive viewers to YouTube though Google search

According to a report in the Financial Times, if the negotiations with major Hollywood studios comes to fruition, Google's YouTube could launch a global pay-per-view video service by the end of 2010. Google's proposal would use a combination of the world's dominant search engine and the world's most popular video streaming service to push viewers to the new service.

FT says that one executive with knowledge of the plans stated that “Google and YouTube are a global phenomenon with a hell of a lot of eyeballs – more than any cable or satellite service. They’ve talked about how many people they could steer to this .  It’s a huge number.”

The report would probably initially limit operations to the U.S. only, sources said. Later, the service would expand to other countries.

Reportedly, these negotiations have been ongoing for several months, but "have taken on greater urgency in recent weeks." While some of that urgency might be focused on Apple's Sept. 1 event, at which it is expected to unveil a new version of Apple TV, there are other players in the mix, Amazon.com, Netflix and Hulu among them.

Much as with CDs, which have been in decline due to download services such as iTunes and Amazon MP3, DVDs sales have been in decline, and naturally movie studios are looking for a way to supplement their revenue.

Reportedly, the rentals will be streamed rather than downloaded, and the price will be around $5 for new titles. The movies would be available at the same time as their DVD, iTunes and Amazon.com releases.

Since purchasing YouTube in 2006, for $1.65 billion, Google has been searching for a way to effectively monetize the service. It's still best known for its user-generated content, although there are many channels on the service, even for sources such as Microsoft and the Associated Press (and yes, the British Royals have a channel).

As noted earlier, a rather limited YouTube video rental service has been in testing since earlier this year. A new global service would tie in well with the future Google TV.

Comment and add to the story without registration, but keep the comments meaningful please. Links are not accepted.