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Disney-YouTube Strike Deal for Movie Rentals
CNBC.com | November 23, 2011 | 02:44 PM EST

Consumers just got yet another option for entertaining their kids with Disney movies.

Disney just agreed to rent its movies on YouTube -- it will offer hundreds of films from Disney, Pixar, and DreamWorks Studios on YouTube starting today for between $1.99 and $3.99. Disney will receive the majority of revenue.

This makes YouTube a real contender in the video-on-demand space, building its reputation as a destination for premium professional content, and not just silly pet videos. Disney joins Sony Pictures, Universal, and Warner Brothers, which started renting movies on YouTube back in May. Now YouTube has "thousands" of movie titles for rent.

YouTube is still missing Paramount and 20th Century Fox films, which its rivals have, but this shows that YouTube will invest in content to pose a real competitive threat to Apple's iTunes, Amazon , and even the video-on-demand options from cable and satellite TV providers like Comcast and DirecTV. Users will be able to access these movies both online and on their TV sets via the YouTube app on Google TV .

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