Wall Street Journal is reporting that YouTube is in negotiations with Lions Gate Entertainment Corp., Sony Corp. and Warner Bros. to deliver premium movie titles to users for a fee. The price, insiders say, will be around $3.99 with new titles made available the same day DVDs are released. The same insiders tell the WSJ that 10,000 Google employees will be invited to test the service for three months before going public, if the company is able to bring the studios on board. Lets keep our fingers crossed that a deal gets worked out soon — and that the price comes down a bit (under $2 sounds good to me). Interesting side note from the article: YouTube currently gives studios 70% of the ad revenue generated on their current library of movie titles.
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