Tomorrow, YouTube will start renting online movies at $4 for 48 hours. At launch, the selection will consist of five titles from the upcoming Sundance Film Festival, says the Associated Press, but Google hopes to get studios on board in the coming months. Studios will be able to set their own prices and rental periods, however, should they participate.
Earlier this month, Netflix made a deal with Warner Bros. to delay new DVD releases for 28 days. Over at Hacking Netflix, the CEO of the company goes into some detail on why he approached Warner Bros. to begin with (it was his idea, not theirs), and why he thinks it will work out better for everyone except those customers who signed up expecting all new releases all the time.