4 Reasons Why Pay-Per-View YouTube is a Hard Sell

Earlier this year Google started offering online rentals of Sundance Film Festival movies. It bombed. According to the New York Times, Google made a paltry $10,709.16 from its $3.99 rental service over the course of 10 days, and the videos only garnered a combined 2,684 views. Perhaps the content was too niche for a broad audience, but those are still some mortifying numbers.

Worse yet, Google plans on raising prices to $5 per film, according to The Financial Times. If $3.99 didn't work, why does Google think $5 would? Granted, premium content will receive more views, but Google has a spotty track record in the rental biz, and raising prices doesn't seem like the best solution.

YouTube Videos Streaming Only, No Download Option

The movie rental industry is still popular. Redbox is a great example: as a company, it is seen as "destroying" Hollywood with its $1-per-night DVD pricing model. But when it comes to online content, many people want to own what they buy — which is why Apple had to ditch DRM on iTunes. Google doesn't seem to grasp the concept of video ownership. According to The FT, these YouTube videos will be streaming-only with no option to download. This also forces YouTube renters to have an Internet connection at all times, eliminating portability.

On the plus side, downloading YouTube videos has never been a problem before, so even if Google encrypts its films, I imagine clever hackers will find a way around it.

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