YouTube is going Hollywood with its new streaming VOD service that may provide some competition to services from the likes of iTunes, Hulu and Netflix. YouTube Movies now offers current mainstream features in addition to trailers, reviews, alternate endings, behind-the-scenes specials, cast interviews, and other extras. (You can browse current titles and check out the interface at the YouTube Movies page.)

This may prove to be a big move for Google (YouTube’s parent company), which no doubt hopes consumers will use Google TV (with updated Android 3.1 this summer) to stream rented movies. YouTube has been renting and offering movies for free with ads for more than a year, but the titles have been less than current.

According to the FAQ section of the company’s press release, YouTube has added approximately 3,000 new titles, “including catalog and new releases from Sony Pictures, Warner Bros, NBC Universal, Lionsgate Films and many great independent studios. This brings the total number of movie titles available to rent on YouTube to over 6,000.”

Viewers will have 30 days to begin watching a rental and, in most cases, will have up to 24 hours to complete viewing.

Engadget reports: “The pricing is $2.99/$3.99 for movies viewable via PC or Google TV (no other device support is mentioned) and the FAQ notes that YouTube supports resolutions up to 4K but ‘most’ of the new additions are sadly in SD, a choice which is apparently up to its partners.”

YouTube is betting that consumers are ready for a change in their viewing habits. Head of YouTube, Salar Kamangar writes on the company’s blog: “You’re finding more and more of the content you love on YouTube, which is now available on 350 million devices. We know this because you’re watching videos to the tune of 2 billion views a day. But you’re spending just 15 minutes a day on YouTube, and spending five hours a day watching TV. As the lines between online and offline continue to blur, we think that’s going to change.”

Related Engadget post (including YouTube press release and FAQ): “YouTube adds 3,000 movies for rental from Universal, Sony, Warner Bros.” (5/9/11)

Related article from TheWrap: “YouTube Finally Goes Hollywood With New Movies on Demand Service” (4/25/11)

Related article from TheWrap: “Mark Cuban: YouTube Can Change the World, But It Can’t Make Money Streaming” (4/14/11)

According to the YouTube Blog, the popular video site has officially launched its beta version of YouTube Live — the possible next step in turning YouTube into a competitive TV streaming site. YouTube has live streamed concerts, sporting events and interviews in the past, but YouTube Live has the potential to be something much more significant that could grab the attention of broadcasters, advertisers and social media experts.

The blog announcement explains: “With over 2 billion views a day, it’s easy to think about YouTube as a place to watch videos recorded in the past. But you’ve told us you want more — and that includes events taking place right now…”

Although the announcement does not include the special celebrity channels touted in the press of late or any mainstream content yet, it does describe some basic information such as a browse page of live and upcoming events, interaction with users’ customized pages for channel subscription alerts, and YouTube’s plans for a “gradual rollout” of the live streaming beta platform.

The potential success of YouTube partners streaming live from their own channels may largely depend on the amount and type of content, as well as the social interaction between users and fellow streamers. However, it is clear that with the YouTube Live platform in place, Google is setting the stage for bigger ticket items, such as “broadcasting” professional content and global news and events.

Related Digital Trends article: “YouTube Live debuts as its overhaul continues” (4/8/11)

Related Wall Street Journal article: “YouTube Recasts for New Viewers” (4/7/11)

CNN reports that the debate regarding whether Google is a media company or tech company — a publisher of content or indexer of content — may soon be over, as the company prepares to morph YouTube into an online “studio system” for a new era of content production. CNN suggests Google is already a media company, but the question should more accurately address what kind of media company; perhaps “one that operates by the economics of the Internet, with no legacy ties to the economics of television, movies, or publishing.”

In recent months, Google has been investing heavily in its YouTube division, including: the hiring of content execs from Netflix and Paramount, recent acquisitions to enhance its current quality of offerings, plans to reportedly spend $100 million on developing new celebrity “channels,” and more. Google hopes to expand YouTube’s dominance in the UGC market to include niche programming and mass entertainment.

Of course, what makes the online video resource unique in terms of serving as a content provider, is that it has very little overhead. As compared to other media companies that are more directly involved in actual production, YouTube’s marginal costs are nearly zero. Advertising revenue is earned the same way whether viewers are clicking on a cute video about someone’s cat — or a professional basketball game (Google is in talks with the NBA and NHL to show live games on YouTube).

YouTube also enjoys the potentially infinite number of specialty channels the Internet provides, an approach that is not practical for cable. It may not matter from day-to-day which channels do well and which do not. As long as YouTube makes the platform available, the content can regularly evolve.

In the ongoing battle between two tech giants, Microsoft claims that Google is stifling competition in Europe where Google controls approximately 95 percent of the online search market. Microsoft also alleges that Google is limiting data from YouTube and other services. The Los Angeles Times reports that Microsoft Corp. plans to file a formal antitrust complaint against Google Inc., as part of the European Commission’s investigation launched last November.

This is the first time Microsoft has filed such a complaint against a rival.

“Google has done much to advance its laudable mission to ‘organize the world’s information,’ but we’re concerned by a broadening pattern of conduct aimed at stopping anyone else from creating a competitive alternative,” wrote Microsoft General Counsel Brad Smith online. “We’ve therefore decided to join a large and growing number of companies registering their concerns about the European search market.”

According to Smith, Google is limiting data from YouTube required to properly display search results for Microsoft’s Bing and other search engines. And while iPhones and phones running Google’s Android software have no problems with YouTube, Smith claims Google has blocked phones running Windows software from interacting properly with YouTube.

“These allegations raise important competition concerns, especially in light of Google’s market share,” Senator Herb Kohl of Wisconsin said, “and we’ll examine them more closely as we prepare for our antitrust hearing.”