So Youtube announced on their blog today that they are going into the movie rental business. Five films from the Sundance film festival (2009 and 2010) will be available on the Youtube rental site over this coming weekend.
Their deal seems interesting, especially for fledgling, independent movie makers because they promise complete control over the distribution of their films on the site down to the price and rental duration.
So what do you think? Is Youtube the next big challenger for the movie rental throne? Do they have enough to seriously compete with Netflix or RedBox?
Discuss...
3 comments:
I think this has potential to be a descent business model, especially for independent film makers. There will be kinks to work out, and it will undoubtedly be tough to compete with netflix, redbox, etc... It's very early in the making to tell what kind of result they will have, but I think it could be a high market for independent film makers, but as for blockbuster films and films produced by major companies, it won't be much of a success.
This is an excellent idea for Youtube considering how many people view their web site everyday. They already have the market and the people, so why not get something like this started. Netflix, blockbuster, redbox all don't have nearly as many visits a day as Youtube. It will take some time to get this going, but it is a very good idea.
Google purchased YouTube in October 2006 for $1.65 BILLION. This cost does not include additional expenditures since gaining ownership. Think for a moment about the economy of scale that must be created for a company with a high investment to ever make money.
Could you imagine creating revenue projections that should Google making money from YouTube?
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