YouTube is reportedly in negotiations with major Hollywood studios for a deal that would see full-length movies on the service. It would put YouTube, owned by Google, in direct competition with services from Netflix, Amazon and Apple, which allow users to buy or rent movies online. YouTube, which already offers some older movies on its site free, is said to be talking with Lionsgate Entertainment, Sony and Warner Brothers .

YouTube said: "While we don't comment on rumour and speculation, we hope to expand both on our great relationships with movie studios and on the selection and types of videos we offer our community."

Studios refused to comment, though Lionsgate said it has enjoyed considerable success with offering movies and television shows through Apple.

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