For months, Google, YouTube's parent company, has been talking to the major film companies about launching an ad-supported, streaming movie service, two execs with knowledge of the negotiations told CNET News. "It's not imminent," said one of the executives. "But it's going to happen. I would say you can expect to see it, if all goes well, sometime within the next 30 to 90 days."
A roadblock has been Google's insistence on using a specific ad format for feature films, according to two studio sources. Google refused to comment on this but did say, "We are in negotiations with a variety of entertainment companies. Our goal is to offer maximum choice for our users, partners, and advertisers."
If feature films on YouTube does materialize it is likely that at least initially only web access will be permitted. The iPhone and AppleTV probably do not have the capability to display ad-supported movies.