YouBring the popcorn

How do you solve a problem like YouTube? Google has a success on its hands with the video site it paid over a billion dollars for in 2006, but it's still known primarily for daft cat videos. To really turn the site into a 'destination,' they want higher-value content. They're already expanding their live event coverage and commissioning specially-made programming; now it seems the next step is film rentals.

Movie site The Wrap says YouTube will 'imminently launch' a service where users would pay a rental fee to stream Hollywood movies. This would be a big expansion of a limited experiment with rentals that's been running for several months.

It follows Tesco's purchase of BlinkBox, a British site that offers a similar service.

According to the report, the major studios are on board and the service is pretty much ready to launch. It would compete with Apple's iTunes, which offers movie rentals and has for some time.

Of course, it'd face one big stumbling block - people don't necessarily want to watch movies on their PC. So Google's efforts to get YouTube built into to TVs made by partners will continue apace, we reckon.

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