Google-owned online video site YouTube will be offering over 3,000 popular movies for rent starting on Monday. The new movies will be in addition to the free user-created videos it already has.
YouTube product marketing manager Camille Hearst said in a blog, "In addition to the hundreds of free movies available on the site since 2009, you will be able to find and rent some of your favourite films."
Hearst added that YouTube is working towards bringing some titles the same day they are released on DVDs.
YouTube, which was bought by Google in 2006 for $1.65bn, will compete with companies such as NetFlix with the rental service.
Last month, e-commerce company Amazon had announced the launch of Amazon Instant Video, a free video on demand service last week and the acquisition of Lovefilm which is a DVD rentals business in the UK.
To avail the service, users will first have to upgrade their accounts. They can then select a movie to watch after paying $3.99 for new releases and $2.99 for others. The users must watch the selected movie within 30 days. Once the users start viewing a movie, the window will be active for 24 hours, within which they must complete watching it.
The company hopes to leverage from technology such as faster broadband and mobile devices.