Yes, according to anonymous entertainment execs that spoke to CNET news. Apparently, it is supposed to be very similar to the Hulu site which allows users to view ad-supported movies, note that this is only available to people in the US. The informants also hint that it may be available by January 2009, which means we'll get it up here in Canada in January 2012.
Update (10/11/2008): MGM has just signed up with YouTube to provide films. It should be noted that YouTube already has deals with Lionsgate and CBS.