It looks like you will soon be able to add YouTube to the list of companies trying to bring an end to the need for physical media.

According to CNet, YouTube is finishing the legal side of an agreement with a major film studio to provide full copies of their movies on the video sharing site.  The movies will be supported in some way with advertising, but no announcement has been made yet as to which form it will take.

While it is certainly a nice idea to watch movies you want on demand without having to buy yet more physical media, how often do you find yourself doign it at the computer?  Hulu has been doing it since it launched over a year ago, and while I know some people have taken a peak, I have yet to talk to anyone who has watched a full movie on Hulu.  Streaming video on a computer screen may be good for things as long as a TV episode, but movies could be rough.  Now, if you can stream these movies to an Apple TV, that would be interesting.

Expect more announcements before the end of the year.