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If the ongoing saga of the 28-day delay windows forced on Redbox by some studios hints at a fractured Hollywood, the latest news on YouTube’s stalled VOD launch confirms the divide. It’s clear that in this brave new world of increasingly stratified consumer preferences, Hollywood studios are not all on the same page as to how best to proceed.

YouTube, the world’s largest video website, has been working on a major rollout of a video-on-demand paid rental service after dabbling with the idea for a while. Holding up the launch, however, is the intransigence of several major studios, including Fox, Paramount and Disney (supposedly).

The holdout studios are believed to be standing their ground because of their perception that YouTube and its parent Google support pirate websites by linking them in searches and advertising on them.
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An executive at Sony, one of the studios supporting YouTube’s VOD bid, admits that the move is a gamble, but YouTube’s enormous and young target audience make it worth the risk:

It’s unproven as to whether this audience through this medium will pay for content. But it’s a huge audience. And it’s an audience that pays for video,”

Are Fox, Paramount etc. right to be reluctant, or are the studios supporting YouTube going to be vindicated?

(via The Wrap)

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