According to a report in the Financial Times (subscription required), Google is talking with Hollywood studios about launching a pay-per-view video service. The global move is said to happen by the end of this year.
Citing people familiar with the talks, the FT says the move would make Google a major player in market of streaming rental movies. Google is reportedly pitching “the international appeal of a streaming on-demand movie service” that is tied to YouTube and the world’s biggest search engine. Google believes a Hollywood-Google partnership could be highly successful.
No word yet on rental costs, but the FT says its sources say movie rentals will cost around $5 each.
Negotiations have been ongoing for months and if true, the move could make Google a powerful rival to Netflix and Apple’s iTunes (especially when one considers the potential when movie rentals are combined with Google TV).