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September 2, 2009

YouTube finds a way to make money! New release movie rentals

youtube_logo_standard_againstwhite-vfl95119.jpgWhat happens when DVD sales decline $850 million in one year and YouTube can't find a business model that'll lead it to profitability? Hollywood studios and the Google-owned video streaming site tie up together to mutually benefit. That's what the Wall Street Journal is reporting today. YouTube is said to be in negotiations with Lions Gate, Sony and Warner to offer new movie releases on the video site, most likely as fee-based rentals. The rumored price point is $3.99 for new releases, the same as Apple iTunes rentals, of which just under $3 will head back to studio coffers. Currently, some studios offer older movies for free on YouTube supported by advertising. Once negotiations wrap, Google employees will test the service for 3 months before we see anything on the consumer end.

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Posted by Justin Davey at September 2, 2009 6:15 PM

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