Is YouTube Launching a Netflix Competitor?

RedEaredSlider writes "YouTube could become the latest to offer a movie rental service, challenging streaming sites such as Netflix. Google is lining up deals with major Hollywood studios in order to launch the service. An anonymous executive at a studio that has signed on said Sony Pictures Entertainment, Warner Brothers, Lionsgate and Universal have all licensed their movies to the service. Not everyone is on board — Paramount, Fox and Disney declined to join."

Comments

Not really competing with Netflix

[Sonny Yatsen]

Is Youtube's business model really competing with Netflix? The 24-hour $2.99 rentals look and feel a lot more like Amazon's video rental service (excluding Prime) than it does Netflix's all-you-can-eat model. Frankly, I think this model is kind of doomed from the get-go. Amazon and Apple have tried this kind of video rental service, and while I'm sure it's somewhat of a success, it has done absolutely nothing to stop Netflix from gaining market share and subscribers. Even Amazon realizes that the future of video services lie in all-you-can-eat services like Netflix rather than per-title rentals. And, frankly, I think that's what most consumers nowadays want anyway. Unless Youtube is going to actually go toward a more Netflix-like model, or find a model that's even more appealing to consumers, I can't see it as being terribly successful.