Google Goes Broadband with BSkyB

Posted by jonathan at 2:06pm EST on 12/06/2006

LONDON (Reuters) — BSkyB Plc said on Wednesday that it will be creating a partnership with Google to provide a suite of search and advertising functionality. BSkyB is a satellite broadband provider in Britain which means this will expand Google’s advertising reach by a lot.

So what possible benefit could Google get from this expanded partnership? “Revenue generated by click-throughs on sponsored advertising links will be shared between the two firms.” Google is always looking for more ways to generate revenue — as any good company would. This is a win-win situation for both firms because no matter how you look at it, they are both generating revenue they would have otherwise not had.

Google wouldn’t have had this audience if it weren’t for the partnership and BSkyB would not have had the advertising source.

Advertising isn’t the only field though, the partnership terms also includes Google Video as part of the functional spec.

“Google is committed to giving people the power to explore, create and communicate. Today’s alliance with Sky brings together two of the most innovative media and technology companies,” said Google Chairman and Chief Executive Eric Schmidt.

This is a good push for the EU for Google.

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