A trend seems to be emerging, whereby internet and media companies increasingly want to broaden their range of products and services in order to provide consumers with a "one stop shop" experience. At the beginning of this week, BT introduced its own broadband TV service called BT Vision, while also establishing a collaboration with Setanta, the Irish sports broadcaster. Yahoo! and Vodafone also became business partners last month in order to penetrate the mobile advertising market. Under this deal, mobile phone users can obtain discounted rates in return for accepting targeted mobile adverts.
The partnership between Google and BSkyB will produce a range of new services. For example, BSkyB will begin to offer a user-generated video service, which will utilise Google's video content tools. That means BSkyB will make use of Google's recently acquired YouTube video-sharing and search technology, as well as implement its own user-generated content site. Furthermore BSkyB will provide consumers with a customised version of Gmail, Google's email service. Customers will also be able to undertake searches on the Sky website. This search engine will be powered by Google and all advertising revenue will be split between the two partners.
This business venture will also benefit Google, who is looking into the possibilities of television advertising. The search engine already makes use of offline media such as radio, magazines and newspapers in the US; and it is now playing with the idea of determining the TV viewing preferences of its users - an activity which is already possible via Sky's set-top boxes. The information would provide Google with accurate customer data in order to produce tailored campaigns for specific consumers.
Google's CEO, Eric Schmidt, told the Guardian newspaper, "We have been looking for a partner to take the innovation that we have done on our site and extend it to broadband customers."
Other plans also entail free phone calls, which can be achieved through VoIP technology. Google and Sky intend to offer these services both on the internet and on mobile phones by the year 2010.
