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YouTube Becomes Moneymaking Movie Distribution Channel

Youtube-DespicableMe

Last month at Google's ThinkMovie event in Hollywood, I nearly got booted out of the last two sessions because the YouTube guys wanted to preview features that were not ready for the few members of the press attending the event to view. After I convinced them I should remain, YouTube's execs removed the "sensitive" news from their presentation and allowed the media to stay.

It appears that some of those channels came to life on Monday through the Android Marketplace, while others remain in the works. Whether through Google, Apple, Facebook, Microsoft or Amazon, consumers will begin to see movies move online faster than consumers had anticipated as content producers and distributors continue to look for channels to sell and rent movies through cloud-based services. In Google's case, it will provide content for Google TV and mobile phones and tablets running the Android operating system.

That sensitive news might have been released at the Google I/O conference Tuesday, when the tech company said it would offer streaming movies from the Android Marketplace for $1.99. The service is available online, tablets and on phones. As people begin to view more content online as well as on mobile devices and tablets, the definition of content will continue to change. Content will move between what people typically think of as low-budget studio and YouTube-produced, according to one source who calls the space "an interesting place to be." YouTube will likely take budding stars and produce content for distribution, forming partnerships for a series of shows to augment movie rentals from NBC Universal, Sony Pictures and Warner Bros.

On Monday, Google said its video subsidiary YouTube in the United States added about 3,000 new titles from Sony Pictures, Warner Bros., NBC Universal, Lionsgate Films, Starz, The Weinstein Co., Magnolia Pictures and many other independent studios. This brings the total number of available movie rental titles to more than 6,000, such as "The King's Speech" and "Despicable Me."

The streaming service accepts most major credit cards. Typically, viewers will have 30 days to begin watching their rental, which will cost about $3. Once they start watching the movie they usually have 24 hours to finish.

Google said users can embed movies on other sites. If a user who has not rented the movie views the embedded video, the embedded player will show the movie's trailer along with an overlay that users can click on to rent the full movie.

Moviemakers want the widest channel possible to distribute and monetize quality content. They may have found it through YouTube, as it taps into Google's distribution and ad network.

4 comments about "YouTube Becomes Moneymaking Movie Distribution Channel ".
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  1. Khalid Low from Gotham Direct, Inc, May 10, 2011 at 5:12 p.m.

    This is interesting but I wonder how many people would be willing to fork over $3 to watch a movie in 24 hours.
    I see that as a tough selling point and I'd rather stay with Netflix and have unlimited time to watch my movies.

  2. Paula Lynn from Who Else Unlimited, May 10, 2011 at 5:16 p.m.

    Comcast charges $5-7. What's the big deal with $3 to watch a movie that less than 2 hours long? Then don't rent the movie until you are going to watch it. It's not the issue.

  3. Jerry Foster from Energraphics, May 12, 2011 at 3:25 a.m.

    I'd prefer to have advertising embedded in the films so the producers get their $3 per film.

    Will a "customer" be determined by IP address or Logon? I assume the latter but they might get nasty and make it both, which would drive a lot of people back into the arms of the pirates.

    Also, can you stop and rewind? Or will YouTube get suspicious that someone else is sharing your account to get free film viewing? Again, if that happens, pirates will remain in business for awhile yet.

    $2.99 or $1.99 is OK unless the viewer already knows that the film is spreading a message that he or she doesn't like, in which case they will only see the film via bittorrent on the principle that the message senders don't deserve to be encouraged.

    I'd prefer to have advertising embedded in the films.

  4. Khalid Low from Gotham Direct, Inc, May 12, 2011 at 10:28 a.m.

    I think you are focusing on efficiency of watching a movie. I am talking about watching a movie at the comfort of your own pace.
    And I am comparing it to Netflix. I have Comcast and I don't see them as competitors simply because I have on-demand (a ton of movies to watch and I have a hard time keeping up as it is).

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