» Leased lines aid YouTube film rental service

Video site to stream movies for nominal fee

Online video channel YouTube has revealed it will start offering users the ability to stream rented films. The decision by the firm was supported by the increase high speed internet connections such as bonded ADSL and leased lines.

The popular video-sharing website plans to introduce the rental scheme, with films costing $3.99 (£2.48), later in the year. Executives at the firm were said to have been encouraged to make the move based on the proliferation of high-speed internet access.

The lowering of ADSL and leased line costs has seen many businesses and individuals opt to subscribe for a high-speed connection. Leased lines, for example, provide owners with a dedicated and reliable data line to the internet with substantially quicker speeds.

YouTube, which is owned by search engine company Google, is trialling the service in the United States. Initially, only five films will be available for rent although the website has said that it is in negotiations with other studios for the rights to offer further motion pictures.

The increasing availability of high-speed internet, coupled with the decline of subscription prices and leased line costs, has seen millions of users upload video content onto the site. Similarly, super-fast connections have also allowed individuals to view media much faster than with traditional broadband lines.

Last August, it was reported that over 10 billion videos were streamed on YouTube and the company is expecting to generate around $700 million in profit in 2010; an estimated 55 per cent increase from the previous year.