Google Inc.’s (GOOG) YouTube is in discussions with major movie studios about allowing users to stream movies on a rental basis, according to people familiar with the company’s plans, marking one of the video giant’s first moves towards charging for content instead of making it available for free with advertising.

While some studios already make full-length movies available on YouTube, they tend to be older, lesser-known titles. Now YouTube is talking to Lions Gate Entertainment Corp., Sony Corp. (SNE) and Warner Bros. about integrating newer titles into the existing YouTube site, most of which it would carry a rental charge. In some cases, these titles might be available on the site on the same day that they come out on DVD. It is unclear to what extent older movies or television shows will be part of the new agreements.

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The genesis of Netflix (NFLX) came in 1997 when I got this late fee, about $40, for “Apollo 13.” I remember the fee because I was embarrassed about it. That was back in the VHS days, and it got me thinking that there’s a big market out there. So I started to investigate the idea of how to create a movie-rental business by mail. I didn’t know about DVDs, and then a friend of mine told me they were coming. I ran out to Tower Records in Santa Cruz, Calif., and mailed CDs to myself, just a disc in an envelope. It was a long 24 hours until the mail arrived back at my house, and I ripped them open and they were all in great shape. That was the big excitement point.

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Netflix (NFLX) shares are coming under pressure today following a skeptical note on the company from Needham analyst Charlie Wolf.

Wolf today picked up coverage of the company with an Under Perform rating; he writes that “the company’s current valuation incorporates unrealistic subscriber acquisition cost and churn rate assumptions.” He calculates fair value for the shares to be $22, well below the current level.

Wolf, a long-time Apple bull, seems to be making the anti-iTunes call here. “Netflix’s immediate challenge lies in building a profitable video digital distribution business,” he writes. “In contrast with the online DVD rental market, which the company has owned, Netflix will have to compete with several heavyweights in this market. Indeed, Apple has already carved out a first-mover advantage.”

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