Google to offer Pay TV on YouTube

youtube_1080pGoogle [GOOG] is looking in to a pay TV system on their YouTube site that will allow users to pay to watch episodes of premium content. The service is said to be taking on the iTunes service.

The cost per episode is rumoured to be $1.99 which would be the same was what Apple charges iTunes users although in the early stages it seems that Google and YouTube will be offering a lot less. The reason being that if you download from iTunes the episode can be shared among a number of Apple devices that includes iPod’s, iPhones as well as Apple TV and your Mac.

That issue is regarded as Google as a perception problem in that most people pay the $1.99 and watch a show just once and not a number of times across a number of devices. As the Youtube service is web based though and with the potential of TV’s streaming HD YouTube content direct to embedded players then perhaps this isn’t really an issue as you could really log in to your phone, PC or TV and watch the paid for content.

Right now, YouTube earns some money through ads displayed around the pages of the site as well as ads that slide out from the bottom of videos a few seconds in to the program. By creating a pay per episode service it will further boost revenues for the company.

Via: Apple Insider and Slippery Brick

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