Google has invested over $200 million as it expands into the world of video on demand.

Analysts believe that Google is gearing towards a new window in its already successful business, and that is in the form of online video rentals which include ad support. Reports state that Google has spent over $200 million to get third party licenses and rights to publish videos, which is believed to be a move to help revamp YouTube into a highly profitable Video on Demand (VOD) portal.

This strategic move is estimated to earn Google billion of dollars, as the online streaming and downloading of digitized movies and TV shows increases. Pretty soon, digital distribution of films and shows will lead to a lower cost of third party licensing fees, opening more opportunities for other companies to imitate Google’s move for providing rentals and VOD subscriptions.

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