YouTube Rental Movie Streaming Service Coming Soon

Google has been working on several avenues to get a foothold on the entertainment business. While we are still to hear the latest on the company’s venture in the Google TV business, we hear Mountain View is already in talks with major media companies to launch a pay-per-view rental movie streaming service on YouTube. YouTube is already the world’s largest video sharing network and a launch could easily make Google the leader in this segment – ahead of players like Netflix and Hulu.

But Netflix and Hulu are not the biggest losers here. As TechCrunch points out, the loser in the long term could be the traditional cable TV companies that have failed to adapt (or rather stopped from innovating) in order to maintain their ridiculously high profit margins. With the entry of newer internet based movie and TV show streaming services, content producers have started seeing value in licensing their content to these companies and this could turn the tide in the favor of these new-age media companies. TechCrunch notes,

“Cable is vulnerable because for far too long they’ve screwed us all with ridiculous prices for a crapload of content that we simply don’t want. Despite the ever-present promise of a-la-carte pricing, it has never come to fruition. And so our cable bills remain close to (or over) $100 a month. We’re paying for so much stuff we simply don’t want. But we have no choice.”

Do you see value in these arguments?