YouTube is in talks with leading movie studios about introducing a rental service for films that would be streamed from its site, according to people close to the negotiations.
The move would put Google, YouTube's owner, in direct competition with a host of other companies providing movies online, including Amazon, Apple, Blockbuster, Hulu, Netflix, Microsoft, through its Xbox console, and Sony, through the PlayStation 3.
Rental fees could provide the lossmaking unit, which at present relies on advertising, with an important new revenue stream.
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