Youtube Testing More Video Rentals

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YouTube loves the idea of renting video, pay per view. It has dollar signs written all over it. However, after the first rental experiment revenue figures which were a little dissapointing, Youtube are moving into phase two/ They are offering a selection of videos for rental from a number of niche content providers and distributors. However they are not broadcasting them as it is still at a beta stage.
There appear to be around 13 (unlucky for Youtube?) participants in the next phase, who have each their own YouTube channels offering the videos for rent. There are hundreds of videos available to rent and the price/availability is determined by the provider. It seems that YouTube are happy to let providers determine the details. This is also in line with YouTube's approach of late, as the video site has been very open to letting its content partners set the terms under which the videos are hosted and they decide on monetiation as well.
Youtube's first experiment in video rental saw five independent films on offer from the Sundance Film Festival. They were available for rent for a little over a week, but the results of the trial run were a little dissapointing with YouTube taking around $10,000 for the 2,684 streams it sold. At the time of the initial announcement, YouTube said a lot more content was coming in the short-term future and it seems they are delivering.
The new content will probably get more interest than the the first trial, as it will have a more dedicated, but still small audience. The fact that YouTube is so massive will ensure a reasonable level of interest. But do viewers fed a diet of free, free and more free have an appetite to reach for the credit card?
Just like cheese and ham, Hulu and iPad just kind of go together, after first looking like the tv streaming service wasnt going to happen on iPad, we then heard that Hulu will be on iPad. But like everything, there is always a downside, and that is that the service looks like it wont be free.
Although not absolutely definite yet, the word from inside Hulu is that the freeview current business model may be abandoned while they opt for a subscription-based system instead. The theory being that a charge for iPad viewers could help keep the existing pc version free by offsetting current losses. They may even make some money and it would keep Hulu on every device known to man.
Apple's iPad is expected to be a massive success, anything from Apple is sexy and a must have item. It is also a device that has been designed for media consumption in a portable package. The possibility of having embedded advertising in front of millions of iPad users must be appealing to Hulu.
However, there is still the thorny issue of no flash (used to run Hulu) which is not supported on the iPad. But the boffins involved are looking at alternatives such as HTML5 or even apps like YouTube on iPhone uses, this would need major back end engineering at Hulu. They would also need to re-encode all of the Hulu video archives. Then of course is the issue of needing permission from their content providers to transmit streams to a mobile device.
Although we knew that Hulu might charge for its services at some point, this will be a massive dissapointment for everyone expect the beancounters at Hulu. Depending on how much Hulu will charge and how the iPad revenue model will work will ultimately determine if there is an appetite for it. However looking at the iphone model, paying a small fee as you do with apps could work.