Source: Flickr

Google owned Youtube is beginning to make moves in the streaming online video industry.  Currently, leading online movie rental service Netflix is ahead with streaming movie rentals, but the space is going to get much more crowded.

Youtube, which may be the greatest invention of all time especially for procrastination at work is serious about this new venture.  Normally we use Youtube to watch the latest adorable cat video, or some crazy new dance video, or some old ugly British woman singing the crap out of a song, but that may start to change.

On a limited basis, you can now stream 5 different movie to rent from the Sundance Film Festival using your Google Checkout account.

Last year Youtube talked with movie studios regarding the future of movie rental options on the site.  They also are beginning to push HD video to make streaming on the big screen more worthwhile.  All this will definitely hurt Netflix.

This is a great decision for Youtube who is struggling with a revenue model after Google spent $1.6 Billion to acquire the service.  The ad system is not the same as it is for Google search, but licensed streaming video could be the way.  Netflix is having huge success with their online streaming videos, so why shouldn’t Youtube?  With Google running the show, price isn’t and option, and innovation always is welcomed.  This would really make the industry very interesting, especially since Hulu is also talking about charging a monthly subscription for the service.

People may be pissed about these free services beginning to charge for some content, but I don’t think that will stop anyone.  It will make things so much easier, and actually will end up hurting Apple as well.  Why wait 2 hours to download a movie rental when you could just stream it right away?  This is a great move from Youtube and I’m looking forward to see how this develops.

What do you think about Youtube movie rentals?