The company began adding the films to its website last month, relying on an ad-supported model to deliver the movies to users for free.
YouTube's free movie selection features a number of older films and includes titles such as The Terminator, Rocky, and Legally Blonde.
Speaking to AdAge, YouTube said this move capitalises on an opportunity based on user demand.
"We saw this opportunity based on user demand, beyond just offering paid movies," the company said. "It also presents a nice opportunity for advertisers."
YouTube added that it will eventually add functionality for advertisers to sponsor individual movies and deliver users complimentary views and exclusive screenings.
The company continues to sell full-length titles in the movie section of its website.
