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YouTube's movie rental test posts dismal profits

YouTube began testing the waters with a movie rental service late last month. Starting small, they offered a collection of five films from the Sundance Film Festival. The movies were offered for ten days to see how users would respond to a paid movie rental service.

Charging only $3.99, the films picked up 2,684 views and pulled in only $10,709 total. While the "big guys" in the movie rental business such as NetFlix, Apple and Amazon are certainly not intimidated by such a paltry sum, YouTube says it's happy with the outcome of the test. According to Google, the results "exceeded our expectations given all the barriers" and it looks like we can expect a larger movie rental presence from YouTube in the future.

While nothing is finalized, YouTube says it will be pulling in new video partners and start offering rentals on various sections of their website on a short-term basis. It'll be interesting to see how they fares up against larger companies if their rental service grows.

[via NYTimes.com]

Tags: amazon, Google, itunes, movie, netflix, rental, SundanceFilmFestival, YouTube

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