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December 10, 2006
Google Blog #7
Google Inc. to Take BSkyB Under its Wing
“I've been waiting for this for a while," Google Chairman and Chief Executive, Eric Schmidt said at a meeting in London detailing it’s new global partnership with British satellite broadcaster, BSkyB. While Schmidt might have been waiting, this was nothing the public didn’t already anticipate, given Google’s continuing expansion in the media world.
This deal will enable BSkyB to provide Google’s type of search portal, mail and video services to its broadband customers. In return, the revenue generated from pay-per-click advertising links on the BSkyB site will be shared between the two companies. More concrete financial arrangements have yet to be released. According to Schmidt, this partnership is just the first of what Google hopes to be many deals with other media firms, “If we can get this structure right over the next few months and it rolls out, then it becomes the index case for every other country and every other operator."
This deal is a significant example of the growing importance of Internet search-based advertising to media companies. As we have seen in previous examples, Google is on the cutting edge of online advertising and through this partnership they will only strengthen their firm. BSkyB will also help to strengthen the connection to European Google users and continue to help Google meet their ever expanding consumer base. We all believe BSkyB will be big for Google -- especially since they have had past troubles overseas. Li showed us some of these troubles in a previous blog the troubles with China; by continuing to match up with firms such as British Sky Broadcasting, Google continues to prove their global committment to meet every consumer around the globe.
Posted by eath at December 10, 2006 07:53 PM