Google’s YouTube is eager to launch an unlimited subscription service for movies similar to Netflix and Amazon and is considering starting it overseas to cut down on the competition, The Post has learned.
The search giant, which has been in talks with Hollywood studios for months, is looking to launch the streaming service first in Europe, in particular the UK, before expanding to the US, said executives who have been briefed on the plan.
If Google moves ahead with the plan, it would put YouTube in competition with Amazon, which just acquired UK streaming movie service LoveFilm in January, along with Netflix, which is still eyeing a launch across the pond.
Google has earmarked $100 million for striking content deals with studios and other premium content providers in its quest to expand its offerings beyond the homemade videos that dominate the site.
“Google is going to be launching channels in Europe and will launch a subscription video-on-demand service,” one Hollywood executive told The Post. “They are going to spend $100 million on content.”
The plan is being spearheaded by Robert Kyncl, Google’s entertainment czar who jumped from Netflix to help YouTube push ahead in Tinseltown.
Of course, not all studios are on board. Viacom, which houses Paramount, is still pursuing legal appeals against a court ruling in favor of Google over a lawsuit centered on copyright.
Another Hollywood executive suggested that until Google makes some bolder statements on fighting piracy, they’ll continue to have a tough time gaining significant content rights.
In December 2010, Google acquired WideVine, a Seattle-based company specializing in digital rights management and secure services for Internet streaming video across several platforms.
WideVine’s clients include Netflix, Blockbuster and Vudu among others.
Google has been mulling ways to turn YouTube into an entertainment hub where users can watch movies and TV shows online and has pursued deals with the major studios for months.
It has limited deals to show some movies to users free of charge.
The firm is working on a payment system that would allow users to pay subscription fees. Until now, YouTube has been a mostly free site that makes its money through selling advertising.
Google declined to comment.
While Google doesn’t break out YouTube’s financial figures, the search giant said revenue at the site doubled in 2010. Citigroup estimates YouTube’s gross revenue at $1 billion last year.
Google is said to want to share ad revenue with content owners in order to get more top shelf content.
YouTube is taking other steps to beef up its content. Google is said to be in talks with the NBA about showing live games on YouTube, Bloomberg News reported.
And last week, it emerged that Google is dangling $5 million a piece to entice celebrities to launch YouTube channels with original content, New York Magazine reported.