"I think it may be a smart approach, actually -- acknowledgment that in order to make money but to keep the risks relatively low, they're targeting distinct niches of consumers that may be smaller in number but more willing to pay money," Parks Associates Digital Media Analyst, Kurt Scherf told the E-Commerce Times. "The producers of the independent stuff may be much more anxious to find high-quality distribution partners. So I think that's first, and then you build out your catalog for the Hollywood blockbuster stuff."

In terms of control and restrictions set by the media providers, "that's a slow go for the entire industry, whether you're YouTube or Netflix. It's clear Hollywood is keeping the basic rules clear about how it windows content. Until online gets proven that it's more highly profitable, their cash cow is DVDs," Scherf said.

From the article, "YouTube Slowly Sundances Into New Rental Territory" by Renay San Miguel

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