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YouTube Considering Renting Movies?

The movie rental business just keeps getting more interesting all of the time. With all of the recent hubbub between studios and kiosk operators like Redbox, it looks like the studios may finally be trying to do something to save their industry, instead of just sitting back and living off of insane profits.

There are rumors swirling as of late that YouTube is in talks with many of the major studios to get their movies on the #1 online video service. There is no deal yet, but things are looking promising.

Sticking points in the ongoing negotiations include how revenue from the movie rental service would be shared between YouTube and its partners, and whether movies would be accessible from mobile devices, the Journal said, adding that rentals would likely be priced at US$3.99.

Apparently a trial was planned for this month, but has been pushed back because of ongoing negotiations.
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The thing that sticks out to me the most is the relatively standard – and high – price of $3.99 for a rental. What is wrong with the movie studios? Don’t they realize that they will make more money at a lower price point?

Seriously, I would be WAY more likely to watch a movie from a streaming service if the price was $1.99. At $3.99 each, it only takes me renting 2 movies per month to have it make more sense for me to use Netflix, which gets me unlimited (older) movies streamed to my TV, plus 6-10 rentals by mail each month for under $10. And then there is Redbox at per night…
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I know what their thinking is, of course, that their products are getting devalued and hurting their DVD sales, etc… But it’s too late for that line of thinking. If you want me to rent a movie this way, make it $2 (MAYBE $2.50 for HD).

What do you think? Would you use this service from YouTube?

[via pcworld]

14 Responses to “YouTube Considering Renting Movies?”

  1. Visitor [Join Now]
    Greg Lang [visitor]

    The $4 price is the “nativity” price. They might get a few rentals but people will figure out cheaper options and feel “ripped off”. Standard studio thinking. The first major studio movie available for download was “Brokeback Mountain” for $20. You could buy the actual DVD for $12 to $15 everywhere.

  2. Visitor [Join Now]
    Laura [visitor]

    $3.99? Seriously? I’m a patient person so I can wait for my Netflix most of the time. If not there are a handful Redbox locations at locations I visit nearly every day. WTF movie studios?!?!

    • Visitor [Join Now]
      Sony? [visitor]
      I work with VBG. To find out why this is important, click here.

      Yet another Digital Option, in the ever growing Digital options. Too bad the bar has been set too low with FREE or $1 options in the physical market.

      The Only “True” Digital Innovation is going to be Wide Spread Piracy with the physical alternative being so low! Just like the Music Industry.

      Too bad the movie industry cannot keep producing movies if the vast majority of consumers isn’t willing to pay more than $1 for digital.

      Pointless at this juncture. It’s hard to compete with free or $1 on the physical side, especially since the physical disc is superior to the digital.

      • Visitor [Join Now]
        Carson [visitor]

        What if a studios cuts costs by paying their actors less? What if the era of actors getting 10s of millions of dollars slowly started to dwindle to only millions of dollars? Then they would have to (gasp!) save and invest their earnings.
        If people are wanting to spend less to see their favorite actor, maybe they aren’t worth as much as everyone thinks…
        It just seems like supply and demand will work it out.
        Or
        What if all movies were free and studios got their money from advertisers, yeah batman may have to drink gatorade, but then its free! =)

        • Visitor [Join Now]
          Sony? [visitor]
          I work with VBG. To find out why this is important, click here.

          I like the concept for the Mega-Actors making less. Not going to be an easy sell. We can’t get too caught up on that since most actors have to work other jobs to get by. Most actors are not rich!!!

          Having to watch another Advertisement doesn’t sound all that appealing and I think most would agree.

          Supply and demand has NOT worked out in the music industry evidenced by the ease of Piracy. Going to concerts is out of most budgets and stealing music instead of paying $1 per song is definitely the choice of the Vast Majority.

          • Visitor [Join Now]
            Jody [visitor]

            Actors are not rich? Have you ever seen an episode of Cribs? Seeing all this money wasted on having 8 cars and 3 million dollar homes kinda disgusts me when you know how hard people really work for minimum wage. Thats definitely part of the problem.

          • Visitor [Join Now]
            Sony? [visitor]
            I work with VBG. To find out why this is important, click here.

            You will need to read my message again. I believe you may have missed a Key word.

          • Visitor [Join Now]
            Ham and cheese [visitor]

            Jody, Surely you realize that a vast majority of what is on Cribs is staged, half the time everything is rented.

  3. Visitor [Join Now]
    Sony? [visitor]
    I work with VBG. To find out why this is important, click here.

    You will need to read my message again. I believe you may have missed a Key word.

  4. Visitor [Join Now]
    tye [visitor]

    3.99 is too high. It’s doomed to fail before it’s available.

  5. Visitor [Join Now]
    Craig [visitor]

    Price is to high.

  6. Visitor [Join Now]
    Ann G [visitor]

    Agree with those above – $3.99 is just too high. I can get them via satellite service for that price – but don’t as I consider the service overpriced. $4 for a movie MIGHT make sense for a family when they compare it to going out to a movie. But being a single viewer, it’s out of my range. $2.50 is reasonable and IMHO would be ok. $1.99 and I’d watch far more movies than I do now.

  7. Visitor [Join Now]
    Adam [visitor]

    $3.99 makes sense if you were streaming a movie that just came out to theaters. Which, I think, is a service that should be employed. But for movies out on DVD? No way.

  8. Visitor [Join Now]
    Pootroot [visitor]

    Streaming !!!!!!!! I have downloaded several programs for streaming videos and I still have NOT been able to produce SATISFACTORY results. What programs do you folks use???? Thanks.