YouTube in distribution deal with US mobile network

29 Nov 2006

Popular social networking video-on-demand site, which was acquired by Google recently for US$1.65bn, will in early December make its service available on mobile after striking its first strategic mobile distribution agreement with US mobile network Verizon.

The deal is a clear indication of how YouTube expects to derive revenue going forward: through strategic alliances with fixed and mobile operators around subscriptions.

As part of the deal with Verizon Wireless V Cast, consumers in the US will be able to access a selection of YouTube videos from their mobile phones exclusively for a limited time.

YouTube’s move into the mobile space will enable a new audience of mobile users to enjoy videos virtually whenever and wherever they want said, YouTube founder and chief technology officer Steve Chen.

“People want to be entertained in a way that fits their individual lifestyle,” said Chen,

“This service offers our community and Verizon Wireless subscribers a new opportunity to connect and engage with their favourite videos.

“We will continue to roll out more exciting partnerships and features for the mobile user over the coming year,” Chen added.

The new service will enable video enthusiasts to record and share videos from their mobile phones. The service will cost US$15 a month or US$3 for daily access.

“Delivering YouTube content gives V Cast customers a mobile connection to video content that has revolutionised how people are being entertained today,” said John Harrobin, vice-president of digital media for Verizon Wireless.

By John Kennedy