Google who have been tinkering with the Youtube exemplar for months trying to wring out some earnings are now trying to persuade its millions of users that paying for premium streams could be a good idea.
 

On the other side over in Hollywood, this development could help stem the tide of shrinking DVD sales and topping up the loss with online revenue.presently a few studios are streaming smaller and older movies via YouTube.  Details are thus far scarce on the rental agreements, would users be able to download the movies for subject or just view erstwhile It is believed that the movie streams will be priced virtually $3.99, the same as Apple iTunes Store charges for new movie rentals.
 

Other companies that let users stream or download newer movies include Apple, Amazon.com and Netflix, while Sony’s Crackle and Hulu allow users to arrest older full-length movies online for free.

The duologue are a sign of how YouTube is emerging as a competitor to a broad spectrum of entertainment outlets, including Blockbuster and Netflix as well as iTunes and Amazon.
 But movie studios and TV networks won’t give up their most popular content for a share of advertising, which they complain isn’t sufficient. The negotiations with the studios are part of an effort to open up new revenue streams by charging users themselves.
 
Hollywood has also been eager to distribute more of its films online — as long as it can collect a sensible fee. Though many studios now sell and rent movies online through services such as iTunes and Amazon.com, that has yet to produce meaningful revenue. By cutting a deal with YouTube, which had around 428 million global visitors in June, according to comScore, it can possibly reach a much wider audience.

YouTube’s army of watchers are not used to paying a penny to watch videos. Shorts and the currently available full length movies are free and the number of users observance full length has been balmy as users are not accustomed to watching 90 minutes plus of inviolable content from their pc quiz.

YouTube also wants users to stream movies on mobile devices, but some of the studios are not playing ball, which is strange as iTunes allows this with rentals. It is reported that 10000 Google employees will use the service as a test over three months.
Of course online tv fans want a collection of good free content. Live Internet tv sales are rising and viewers are prepared to pay for premium streams which Youtube obviously know.