The struggle to monetize short clips of user-generated content appears to be too much for YouTube, so the video giant will soon begin offering feature films from Hollywood studios alongside clips of skateboarding dogs.

YouTube's parent company Google has been in talks with major film companies for months about including ad-support films on YouTube. "It's not imminent," an unnamed executive told CNET. "But it's going to happen. I would say you can expect to see it, if all goes well, sometime within the next 30 to 90 days."

While it's unknown whether YouTube will go with pre-roll, post-roll or interruptive ads, one source said some of the film companies want the final say on all advertising.

YouTube is by far the most popular video-streaming website, but adding feature-length content would put it directly into competition with Hulu, the joint venture between NBCU and News Corp.

Hulu, originally hailed as a YouTube killer, currently offers free streams of feature films and television episodes and has generated more ad revenue than YouTube, despite less traffic and fewer streams. Hulu's ads that interrupt the streams, like television commercial breaks, and a recent user pole found that visitors feel the ads are an equal tradeoff for the content.

The addition of feature films from major Hollywood studios would also signal a big change in how YouTube is perceived by copyright holders. The company has been subjected to several lawsuits over copyrighted content, and Viacom CEO Philippe Dauman called YouTube a "rogue company" in July.

YouTube currently has a deal with Lionsgate to create a branded channel with short clips from the studio's films.