YouTube To Compete With iTunes?

Word on the street is that YouTube might be on collision course with Apple’s iTunes. Apparently Google (who owns YouTube) is looking to get into the pay-per-episode TV business, which would obviously compete with Apple’s iTunes. It should be fairly similar to the $1.99 per episode pricing that the iTunes offers, but the main difference would probably be the fact that iTunes TV and movie downloads are saved locally on the users’ system and be shared with other Apple devices. YouTube obviously wouldn’t encourage you to download and save those videos out of the box. Would you pay to watch videos on YouTube, or just ditch it in favor of iTunes?