Google-owned YouTube is to launch a free online movies-on-demand service.

According to entertainment website Digital Spy, YouTube has signed deals with US studios and video-on-demand website Blinkbox to allow the service to go ahead.

Lionsgate, MGM and Sony Pictures are reported to be making more than 400 movies available to the new YouTube Movies channel.

The YouTube deal with Blinkbox will make around 165 movies available for free with Blinkbox, according to Digital Spy, receiving revenue from advertising around the films.

"We hope film lovers enjoy the range of titles in this free library, whether catching up on a mainstream hit or delving into the vast archive of classic films from decades past," said YouTube head of video partnerships Donagh O'Malley.