Sometimes being most popular isn't everything. As rival websites shape up and shake up the movie industry by becoming online movie portals, YouTube has signalled its intentions to jump on board the bandwagon by signing up a few Hollywood studios, including Sony, makers of the last two Daniel Craig Bond films and Lions Gate, home to the gory SAW franchise.
US based Hulu (which Aussies can't access thanks to a host of annoying copyright laws) were among the first to demonstrate the power of online movie streaming, thanks to a dedicated ad-based revenue model that seems to be working for that site. It's traffic has increased exponentially over the last 12 months, while Youtube continued to buck the trend with videos no longer than ten minutes long.
Initally, the films will be streamed through the Hollywood studio's own players and YouTube will serve more as a linking/search device than a host.
According to a CNET report, YouTube have yet to settle on a way to monetarize the deal, a sore point for YouTube, as it rattles the cash box in search of new money making initiatives. In a troubling economy, YouTube is due to lose US $500 million this year, due to rising server and bandwith costs.
Unfortunately, Aussie users will not be able to take advantage of the deal - it's strictly a US-based measure at this time, although we consider the loss of millions of potential worldwide viewers a missed advertising oppurtunity on behalf of YouTube and the big studios.