YouTube Goes Hollywood

Last weekend, YouTube made its first tentative steps into the movie rental business. Entertainment-starved YouTubers tired of the standard funny or shocking viral videos can get a bit of culture. In a partnership with the Sundance Film Festival, users can rent movies from the 2009 and 2010 edition of the festival. The movies included in the beta run include:

Bass Ackwards (Director and screenwriter: Linas Phillips)—After ending a disastrous affair with a married woman, a man embarks on a lyrical, strange and comedic cross-country journey in a modified VW bus. Cast: Linas Phillips, Davie-Blue, Jim Fletcher, Paul Lazar. World Premiere

Homewrecker(Directors: Todd Barnes and Brad Barnes; Screenwriters: Todd Barnes, Brad Barnes, Sophie Goodhart)—The last romantic in New York City is an ex-con locksmith on work release. Cast: Ana Reeder, Anslem Richardson, Stephen Rannazzisi. World Premiere

One Too Many Morning (Director: Michael Mohan; Screenwriters: Anthony Deptula, Michael Mohan, Stephen Hale)—Two damaged young men recover their high school friendship by awkwardly revealing to each other just how messed up they’ve become. Cast: Anthony Deptula, Stephen Hale, Tina Kapousis. World Premiere

The Cove (Director: Louie Psihoyos)—The horrors of a secret cove nestled off a small, coastal village in Japan are revealed by a group of activists. 2009 Sundance Film Festival Audience Award Winner. Available for one 24-hour period only.

Children of Invention (Director and screenwriter: Tze Chun)—Two young children living outside Boston are left to fend for themselves when their mother gets embroiled in a pyramid scheme and disappears. Chun was selected as one of Filmmaker Magazine’s 25 New Faces of Independent Film.

The movies are available for rental for $3.99 through Google checkout until January 31. After the Sundance promotion ends, other videos from unnamed partners in a range of industries will be available. In the meantime, YouTube has been knocking at Hollywood’s door looking to add Hollywood blockbusters to its cache. Closing the deal with YouTube could be a potentially lucrative movie since the popular video site is allowing filmmakers and studios alike to name their price in regards to rentals.

YouTube is attempting to dive into an already crowded pool. Netflix has dethroned Blockbuster as the de facto king of movie rental. Netflix has partnered with all three major gaming consoles to allow gamers to take a break from saving the virtual world to watch someone else do it. They’ve also integrated themselves into current generation television, with consumer electronic giants Samsung, LG, and Sony rolling out Netflix-ready units. Aside from Netflix, YouTube will also have to contend with Redbox, iTunes, and Roxio. Hulu may also be a potential competitor since reports have them still mulling over how to institute a paid content platform.

Hollywood has a lot to think about. As increasing numbers of people rely on the internet to receive their content, the movie industry is taking a hit from a drop in DVD sales. Like the music and print industry, the film industry is finding itself swimming deeper into unknown waters. It’s obvious that the industry’s future is online, but the question is how. In the upcoming year, it will be important for studio execs to find a business model that will keep the dollars rolling in and moviegoers happy. Will the winning formula be subscription-based, an ad-driven model or something completely new?