Movie rentals coming to online video platforms

February 8th, 2010 - Posted by Mihaela in Video broadcasting news

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Nowadays online video rental services are even more popular since YouTube has announced it’s new strategy. The major movie studios are getting involved by offering video content on web platforms such as YouTube. Lionsgate, Time Warner and Sony are just a few of the major production companies who have made these announcements. This particular philosophy is similar to that of Vevo which was built to distribute content from the music industry.

Basically the flow is simple: video studios or other movie producers can share their content on these platforms having the possibility to decide how much they will charge for the videos.

What will platform users win here? Well they will get a part of the rental fee set by the studios. It is rumoured that studious will get about 70%. Free content will be also available but that will include advertising which is currently the main revenue source on YouTube.

The continuous expanding of services like Netflix (it’s available even on the video gaming consoles, the last one being Wii) was one of the main reasons for creating an alternative such as movie rentals on online video platforms. Netflix is way ahead other competitors but this is a very good start for others to compete them. Another two things may result in a successful strategy for YouTube and I am talking here about the $3.99 charge per movie which is the same amount as Apple is charging for their content on iTunes and the other one is the fact that movies will be available on the website in the same day as their DVD release.

This service is still in testing and till the deals are signed only five movies will be available for rent on their website. A nice feature is that you are able to watch a trailer first to understand the movie scenario and then decide to purchase it or not.

This is short demo of how the renting procedure works:

One of the major things they need to be aware of is the audience willing to watch rented movies on their TV, so the infrastructure needs to be created. Also Amazon, Netflix, Sony, Microsoft, Redbox and Blockbuster will be some really powerful competitors.

You may also read an interesting article about how to make money renting online video HERE.

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