Video-on-demand service, available in the US initially, will challenge Netflix and Apple's iTunes.

This article titled “YouTube to expand movie-rental service” was written by Josh Halliday, for guardian.co.uk on Tuesday 10th May 2011 09.43 UTC

YouTube has confirmed plans to expand its movie-rental service, with 3,000 new films including The King's Speech and Inception, in a direct challenge to Netflix and Apple's iTunes.

The Google-owned video-sharing website has signed deals with Hollywood studios Warner Bros, Sony Pictures, Universal and Lionsgate. The new premium video-on-demand (VoD) service will only be available in the US initially.

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