AP Sources: YouTube May Offer Online Movie Rentals

RYAN NAKASHIMA

LOS ANGELES (AP) — YouTube, Google Inc.'s online video streaming service, is in talks with Hollywood studios to rent new release movies online, according to people familiar with the talks.

The move follows similar deals by Apple Inc.'s iTunes and others.

A final deal would be contingent on pricing and an agreed-upon release date, said the people, who spoke on condition of anonymity because discussions were still ongoing.

The move takes YouTube one step away from an ad-supported business model, but does not break the mold of other online rental deals already struck by iTunes, Amazon.com Inc. and Cinemanow.com, a unit of Sonic Solutions. All of them offer movie rentals for between $1.99 and $3.99 each with a 24-hour viewing period.

The talks were first reported on The Wall Street Journal's Web site Wednesday.

Discussions were most advanced with Lions Gate Entertainment Corp., Sony Corp.'s movie studio, Time Warner Inc.'s Warner Bros. and Metro-Goldwyn-Mayer Inc., all of which already have ad revenue-sharing deals with YouTube, the people said.