Interesting Article in Wall Street Journal:-


BSkyB, Google to offer version of YouTube site
By Aaron O. Patrick
LONDON— Google Inc. expanded its online-video service by agreeing to let a British broadcaster offer a version of its popular YouTube Web site, a strategy Google hopes to repeat with other media companies around the world.

The Internet search giant yesterday said it would let British Sky Broadcasting Group PLC., which is controlled by News Corp., offer its own version of YouTube as well as Google’s email service under the broadcaster’s brand. The two companies will split revenue generated from selling advertisements next to the videos and emails.

BSkyB will have its own videosharing site, possibly using the name “Skycast,” which will use Google’s technology and let BSkyB customers search for videos on all Google sites. The BSkyBsite will be operated separately from YouTube. BSkyBhas the option to place its videos on Google’s video sites, but hasn’t said whether it will exercise that option.

For Google, the financial impact of the deal is likely to be small. BSkyB, based in London, started offering broadband Internet access this year and as of last month reported signing up just 135,000 customers. For BSkyB, the deal will provide a new source of revenue at a time when the largest television company in the U.K. by revenue is increasingly competing against cable companies that offer a combination of broadband access, telephone services and television.

—KevinJ. Delaney contributed to this article.