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Monetizing the Youtube was in discussion for quite some time and every one was looking forward to see some announcement or a story leak from google to understand what model they are going to bring in.

Matthew Garrahan in Los Angeles and Richard Waters in San Francisco broke this story in todays financial times that You tube is in talks with leading hollywood studios for launching the movies through their platform.

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Negotiations have been ongoing for several months, but have taken on greater urgency in recent weeks, amid intensifying competition between media and technology companies over the digital delivery of film and TV programming. Apple is this week expected to unveil improvements to its TV device, which connects living-room sets to the internet, and eventually hopes to open the device up to “apps” developers.

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I have personally experienced youtube on android platform and its really been optimized in terms of quality and streaming for android. It will be interesting to see how the handset market and operators will react over it as high utilization on the wireless access network is expected after this product launch.

Previously to manage the expectations of Operators, IPhone while launching Phone 4.0 has restricted their video call options to Wi-Fi only.