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Google's Metered TV Play

In the wake of news that YouTube is exploring the movie "rental" business, rumor has it that the Google unit wants a piece of primetime TV, too. Potentially disrupting Apple's iTunes, Amazon, and Hulu, sources tell MediaMemo that YouTube is out trying to convince network execs to let it sell shows a la carte.

"Sources say the site's negotiations with the networks and studios that own the shows are preliminary," MediaMemo writes. "But both sides seem optimistic, since models for such deals already exist. No comment from YouTube."

"The key stumbling block," writes NewTeeVee, "seems to be whether consumers would pay for video streams at the same price that they pay for downloads from iTunes ... But networks and studios don't want to charge less for streaming service, fearing they might then have to renegotiate existing deals."

Under the headline, "From YouTube to PayTube," The Los Angeles Times' Company Town blog writes, "The move would not be surprising given that TV shows are already for sale on iTunes and that Hulu is also likely moving to at least a partial pay model." Company Town's latter point alludes to Rupert Murdoch's professed plans to soon charge for the vast majority of News Corp. content, which (in partnership with NBC Universal and Disney) includes Hulu.

These latest negotiations involve YouTube creating a new micro-payment model for streaming videos, which could potentially rival Apple's iTunes and Amazon's video-on-demand service. According to the report, the top video portal would offer first-run shows a day after airing on broadcast and cable networks for about $1.99 each.

"But a key difference for consumers would be the fact that the YouTube stream would cost the same price as iTunes, even though it would seem to offer less functionality," Apple Insider notes. "iTunes TV and movie downloads are saved locally on the user's system, where they can be shared with a host of Apple devices, including iPods, iPhones, the Apple TV, and other machines."

The news comes on the heels of reports that YouTube has been in talks with major film studios to introduce a movie rental service, which will involve charging about $3.99 for movie streams.

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