While talks continue, talks with Hollywood movie studios could break down By Sumner Lemon
03 Sep 2009

SINGAPORE, 3 SEPTEMBER 2009 - YouTube is in talks with Hollywood movie studios to offer streaming movie rentals, according to The Wall Street Journal.

The video-sharing site, owned by Google, is holding talks with studios Lions Gate Entertainment, Sony, Metro-Goldwyn-Mayer, and Warner Bros. to make premium video content available online, The Wall Street Journal reported.

The report, which cited anonymous sources familiar with the talks, said no deal had yet been reached and talks could break down without an agreement. Representatives for YouTube and the movie studios could not immediately be reached for comment on the report.

Sticking points in the ongoing negotiations include how revenue from the movie rental service would be shared between YouTube and its partners, and whether movies would be accessible from mobile devices, the Journal said, adding that rentals would likely be priced at US$3.99.

A trial of the movie rental service was originally scheduled for this month, but that was pushed back as negotiations with the studios continue, the report said.

Tags: Internet

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