Google may have reinvented advertising with its search engine, but its YouTube property just took a big step in the opposite direction with the announcement of a movie rental service that will make money without relying on advertising to foot the bill.
Five independent films from the Sundance Festival will be available for online rental at YouTube starting on Friday, with other video and film content to follow -- first from the health and education sectors, then from other independent filmmakers. As of Friday, YouTube will offer rentals of Sundance 2009 and 2010 favorites Bass Ackwards, Children of Invention, Homewrecker, One Too Many Mornings, and The Cove.
But the eventual goal, given the scope of Google's vision, is to expand this fledgling video rental program to include mainstream fare as well. YouTube spokesperson Chris Dale could not add to earlier reports that major Hollywood pictures could eventually be available for rental through the program, but did not rule out the possibility.
"These are early days and in the coming weeks we'll also invite a small group of partners across other industries, in addition to independent film, to participate in this new option," reads the announcement. "Anything that brings more content to the YouTube community is a good thing."
Producers have long been able to monetize their videos on YouTube through a partner program that gives them a majority of advertising revenue. The rental option offers a new way to make money on YouTube that doesn't rely on advertising -- somewhat similar to the way the New York Times now plans to charge for online content and the way the Apple-acquired Lala service offers online music without ads. For video producers with many other options for distributing content, YouTube's massive audience holds considerable allure.
"Film can be the most powerful medium in the world, a weapon of mass construction, a way to change the world in a positive way by shining a light on important environmental issues," said Louie Psihoyo, director of The Cove in a statement. "Evil such as we uncovered cannot stand the light. YouTube gives The Oceanic Preservation Society a powerful new platform to shine a light onto issues presented in The Cove."
Starting Friday, anyone with a Google Checkout account will be able to rent these films for whatever price and time period the content owner chooses. For example, The Cove and One Too Many Mornings will both cost $4; the former will be available for 24 hours, the latter for 72 hours. As with Netflix and Amazon's online movie rental services, videos begin to play back immediately after rental.
On the surface, Google's offering of five independent film rentals on YouTube represents a relatively minor development. But given that it represents Google's entry into paid, on-demand content delivery, this is sure to be the tip of the proverbial iceberg.
See Also:
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- China Blocks YouTube, Google Tries to Reinstate Access
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