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December 6, 2006

BSkyB signs up with Google

Posted by David Hunter at 10:24 AM ET.

The eyeball auction continues apace – BSkyB and Google to become broadband bedfellows:

British satellite broadcaster BSkyB Plc said on Wednesday it would tie up with Google Inc to deploy the Internet search giant’s suite of search, advertising and video functionality on its broadband service.

Sky said it would launch an online user-generated video content site, its own e-mail service and a search portal.

Revenue generated by click-throughs on sponsored advertising links will be shared between the two firms. Other financial terms of the agreements have not been disclosed.

The user generated video content site will be seen as a rival to YouTube, which Google recently bought for $1.65 billion.

The latter poses some questions that aren’t answered by the article since it isn’t entirely clear whether Google is merely providing ads for a video content site or actually franchising YouTube. And speaking of Sky and video:

Sky had problems with its fledgling on-demand film and sport download service in August. It was forced to shut down the service for three months after the software provided by Microsoft was cracked, enabling the digital protection to be stripped.

We mentioned this previously here.

Update: It’s apparently a technology lease:

As its first global partnership of the kind, Google Chairman and Chief Executive Eric Schmidt told journalists, the deal was a milestone for the California company.

“I’ve been waiting for this for a while,” he said at a meeting in London, adding that the significance was boosted as it marked the first time Google had sold the use of the back-end technology of YouTube and GMail.

He said that Google was planning similar deals with other large media firms and content providers. “If we can get this structure right over the next few months and it rolls out, then it becomes the index case for every other country and every other operator.”



Filed under Coopetition, Google, Microsoft, Sky

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One Response to “BSkyB signs up with Google”

  1. More on the BSkyB Google deal -- Microsoft News Tracker Says:

    [...] As the details of yesterday’s BSkyB agreement with Google become clearer it is evident that it is bigger than one might believe at first glance, since Google is trying out what they consider to be an important new business model with BSkyB as the pilot project: The partnership will at first see Google provide its user-generated video, e-mail, search and targeted advertising tools to customers of BSkyB’s five-month-old broadband internet service – the first licensing of the video tools Google bought when it acquired YouTube for $1.65bn in October. [...]

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