Amid a series of hearsay, the Financial Times published a report by Dan Nosowitz revealing that Google has been working on a new deal with one of the movie studios in Hollywood to start video service that would deal with movie rentals online. The movie rental service would extend on the global level for online users, depending on the system of pay-per-view.

The report included information regarding the Company that Google would be employing for this service, announcing that it would be YouTube. Google’s pay-per-view would initiate in the U. S. and then later would reach other countries. Google would be responsible for the search technology, whereas YouTube would be handling the viewers’ flow to the service.

By that move, Google would be eliminating Apple’s domination of the film’s digital distribution and would be starting a head-to-head competition with Amazon. com. On the other hand, Hollywood movie studios are hailing the collaboration of Google and YouTube as it would ultimately result in a better and wider distribution of the movie services.

One of the executives who is aware of the new deal said, “Google and YouTube are a global phenomenon with a hell of a lot of eyeballs – more than any cable or satellite service”. He also added that a ‘huge’ number of users would definitely be subscribing for this service the minute it is on.