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.
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 $1 per night…
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?