YouTube wants to compete with cable TV

YouTube  has been exploring various ways to show full length programs next to its user generated content and short clips. Monetization through advertising is met with some resistance, Hollywood studios and TV companies are reluctant to cannibalize revenue streams, such as from cable TV and DVD sales, by offering premium programs for free viewing on the Web — even under an advertising revenue-share model.

Talks also ended when Sky decided that it would not allow Google to broadcast its content free of charge. A Sky spokesman said: “The pay model is at the heart of our business and allows us to invest significantly in high-quality, distinctive content.” Sky said that it will continue to offer clips of its shows on YouTube but will not allow internet users to watch any full-length programmes for free. via Sky pulls out of YouTube talks with Google – Telegraph

YouTube is now considering subscription models similar to those used by cable TV networks. Another option is a movie rental model similar to Apple Inc’s iTunes or Amazon.com. YouTube has held talks about rentals with Lions Gate Entertainment, Sony Pictures, and Warner Bros, via .

Whether it will be advertising, suscriptions, or a mix of models it is clear that YouTube is determined to enter mainstream TV and further shake up the Media arena.