You Tube, the internet's popular site with clips of just about anything are to move into film rentals - initially this will only be available in the USA but if it is a success then plans are for the service to become available worldwide - Google-owned YouTube plans to test a video rental service with five films from the Sundance Film Festival that will be made available on Friday.
On Wednesday, the eve of Sundance, YouTube said it would rent the films to U.S. users through Jan. 31, the last day of the independent film festival. YouTube said it would provide details Friday on the films and how they would be offered.
The Wednesday announcement indicates that Google continues to look for ways other than advertising in trying to turn a profit from YouTube. The site has struggled for years to strike a profitable ad model, given its high infrastructure costs.
Analysts differ on how much of a money trap YouTube is for Google. While Credit Suisse last April predicted Google would lose $470 million on YouTube in 2009, market research firm RampRate pegged the loss at $174 million.
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