YouTube to Offer Movie Rentals

YouTube, Google Inc.‘s online video streaming service, is in talks with Hollywood studios to rent new release movies online, according to people familiar with the talks.

The move follows similar deals by Apple Inc.‘s iTunes and others.

A final deal would be contingent on pricing and an agreed-upon release date, said the people, who spoke on condition of anonymity because discussions were still ongoing.

The move takes YouTube one step away from an ad-supported business model, but does not break the mold of other online rental deals already struck by iTunes, Amazon.com Inc. and Cinemanow.com, a unit of Sonic Solutions.

The talks were first reported on The Wall Street Journal’s Web site Wednesday.

9/2/2009 6:48 PM RYAN NAKASHIMA, AP Business Writer LOS ANGELES