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BSkyB, the satellite broadcaster in which News Corporation, parent company of The Times, has a 39.1 per cent stake, has cut a deal with the internet search giant in which the two will share revenues from advertisements aimed at the satellite television company’s broadband customers.
The deal will also mean that BSkyB will use Google’s video content tools to launch a portal allowing users to share their own video content, including the facility to upload and download from a mobile phone.
Google will also provide a customised version of Google Mail for Sky customers, which will use the Sky brand. Both firms refused to discuss the financial terms.
Eric Schmidt, chairman and chief executive of Google, speaking in London yesterday, said the deal with BSkyB, which follows Google’s acquisition of YouTube, the video-sharing website, is not exclusive but is the first of its kind. “We want to make sure this works first,” he said. “If we can get this right, it becomes the index for every country we work in.”
He will speak to other British companies about signing similar deals, if this is successful.
James Murdoch, chief executive of BSkyB, said yesterday that he will start to roll out the communications platform — which will include the e-mail service and could also involve Sky exploring Google’s voice over internet protocol (VoIP) — in the spring. Other services will be rolled out soon after.
BSkyB’s shares closed yesterday up ½p, at 522½p.
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