MisterWebNet

If movies were to accurately portray the pace of modern life, the negotiations between YouTube and the movie studios would produce a real life drama of four hours duration. Google is still negotiating, but in a step forward it seems all parties are close to an agreement on how exactly to proceed.

The movie studio's invlolved include Lionsgate, Warner Bros and Sony Pictures. All have uploaded shows and movies to YouTube over the past couple of months - perhaps as a trial to gather information on what revenues they could expect, viewer figures, distribution etc. Tradionally they've been opposed to sharing video on the internet, but given their opposition thus far has done nothing to stamp out illegal movie sharing and piracy, perhaps movie studios are slowly coming to the realisation that allowing users download and view movies online in return for revenue might not be such a  bad idea afterall.

The movie studios have always wanted a more traditional form of pricing - a pay per view or pay per download. Google first attempted to entice them into a revenue sharing deal, where watching movies would be free, but users would be shown contextual advertising and revenue from each click would be shared between Google and the movie studio.

Google for its part is anxious that the deal go ahead. Were another video sharing site to strike a deal with the movie studios it would represent a challenge to Google's dominance of the market. In addition, at a time when its pay per click program, adsense, is producing less revenue, the idea of levelling a flat charge to viewers to watch a movie is an attractive proposition.

With Google moving faster to appease the movie industry, a deal could be struck soon. Where this would leave Viacom's $1 billion lawsuit against YouTube for copyright infringement is unkown. But surely Google will view a deal with the movie studios for premium content, a cementing of its position as the number one video sharing site and increased revenue as a good days work. The alternative is many days defending against copyright infringement lawsuits.