YouTube to Get More Movies?

In a move that is sure to make exhibitors and retailer stand up and take notice, YouTube might start streaming blockbusters

In what might seem like a natural fit, but one that is sure to raise the ire of exhibitors and video retail outlets, YouTube are apparently in talks with major Hollywood studios so it can stream movies on its site – for a fee of course.

Currently, the YouTube business model is based on free movie uploads and viewing, supported by advertising. If they were to stream videos, they would be in direct competition with netflix and similar services, which is good for the consumer, but not so good for them.
According to the NY Times, studios being targetted include big players like Sony and Warner Brothers, and you would hope that the quality of film would be vastly improved.

It already has a deal in place with MGM and CBS, which allows them to showcase older movies, but this deal would include recent releases.

Then there is the question of whether its servers could handle a huge amount of traffic if a blockbuster was released on the service. Some folks broadband is slow enough at downloading poor quality videos, let alone with an HD movie or similar.

Both YouTube and the studios are issuing the standard “no comment” line at the moment, but it is believed that negotiations are well under way.