Search-giant Google (NASDAQ: GOOG) is reportedly in talks with industry-executives to bring movie rentals to YouTube, according to a report to the Financial Times, placing the company on a collision-course with Apple’s (NASDAQ: AAPL) iTunes.
Analysts expect that Google will attempt to take advantage of YouTube’s wide usage base and availability across all sorts of devices, including the iPhone and the iPad. Google wants to leverage its current wide reach and hope that users will pay for the privilege of renting full-length movies and TV shows via the service.
Some believe that the question isn’t whether or not people will be able to be entertained, but whether or no they will be willing to pay for content when there’s a wide variety of free stuff to watch on YouTube, or whether or not they’re satisfied with existing services from potential competitors Netflix and Hulu.
Google Inc. maintains an index of Websites and other online content, and makes this information freely available through its search engine to anyone with an Internet connection. The Company’s automated search technology helps people obtain nearly instant access to relevant information from its online index. The Company generates revenue primarily by delivering online advertising. Businesses use its AdWords program to promote their products and services with targeted advertising. In addition, the thousands of third-party Websites that comprise the Google Network use its AdSense program to deliver relevant ads that generate revenue and enhance the user experience. In September 2009, the Company acquired ReCAPTCHA Inc., a spin-off of Carnegie Mellon University’s Computer Science Department. In February 2010, the Company acquired Aardvark. In February 2010, the Company acquired On2 Technologies, Inc. In August 2010, it acquired Slide, a social technology company.
Shares of Google (NASDAQ: GOOG) traded down 0.70% during mid-day trading on Monday, hitting $455.64.
