BSkyB in Broadband Deal with Google

08 December 2006

LONDON: UK satellite TV giant BSkyB is to offer a version of cult video-sharing website on its broadband internet service, following a tie-up with its new owner Google.

Sky, which aims to sign three million broadband customers by 2010, intends to run the service both online and via mobile devices. It will use the internet search titan's technology to let subscribers search for videos via its own site, possibly branded Skycast.

Google will also allow the News Corporation controlled business to modify the Gmail service for use under the Sky brand name.

Advertising revenue generated from selling space next to the videos and emails will be spilt between the two companies.

Google hopes this will be the first of many such alliances as it ventures into TV advertising. It is looking to use information about viewing habits, obtained through the broadcaster's set-top boxes, to produce more targeted ads.

Comments Google ceo Eric Schmidt: "This is an example of how we can work with a lot of media companies."

Data sourced from Wall Street Journal Online; additional content by WARC staff