TheWarp has the exclusive on YouTube getting ready to launch their own movies on-demand service. The service will allow users to stream key Hollywood movies.
The key Hollywood studios have been searching for a competitor to iTunes that they can push and it seems as though YouTube is that key competitor.
It is expected that the new movies on-demand service could launch as soon as this week, but I would expect it in a few weeks time. Studios that have already signed include Sony Pictures, Warner Brothers and Universal. So far only Paramount, Fox and Disney havent joined the service, but Im sure after a while they will follow (except Disney, who has Steve Jobs as the major shareholder).
You can check out the full details over at TheWarp.