YouTube is planning to show just-released, full-length Hollywood blockbusters and other films online.
According to US website TheWrap, which covers Hollywood news, the pay-per-view, on-demand service is imminent, with a possible launch next week.
YouTube already shows some full-length films online but the new service would bring the new service would see brand new films available on the same day as the DVD and Blu-ray discs go on sale.
Major players including Sony Pictures Entertainment, Universal and Warner Bros are already said to have signed deals with YouTube.
With the internet streaming service now available on most of the latest generation internet-connected TVs, the deal will pitch YouTube as a clear rival to Acetrax and LoveFilm, as well as Apple’s iTunes Store and Sony’s Qriocity service.
With Amazon’s recent acquisition of LoveFilm and Tesco’s buy-out of Blinkbox, it looks like the competition to deliver video on-demand is hotting up.