Sky signs up Google services

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Sky has announced a multi-year agreement with search giant and YouTube-owner Google to offer Sky users a range of Sky-branded Google services.

As owner of YouTube, Google will help Sky set up and run a video service for its subscribers, allowing them to upload, edit and share video clips via PCs and mobile phones.

YouTube is already run on Google's video technology and, while Sky's video portal will be based off the same platform, increasingly more YouTube technology is expected to be integrated down into Google.

A customised version of Google Mail will also be available to Sky customers using the @sky.com domain and will add in calendar, contact and instant messaging. There are additional plans for a Sky-branded VoIP service using Google technology, online storage and more, according to the announcement.

Google's search and advertising tools will be rolled out across Sky's online portfolio, with a revenue share agreement in place.

Ian Fogg, analyst at Jupiter Research, said that this was another step in Sky's positioning itself as a broadband ISP and ensuring it has a compelling access package. The Google deal is a "leg up" in attaining this.

"It's yet another example of Sky deciding to do something and putting their hearts and minds into it," he said.

Financial details were not revealed.

James Murdoch, Sky's Chief Executive, said: "These agreements will bring Sky customers a valuable set of services from the world's leading search company, including cutting edge tools for video sharing and communications... In a short time, Sky has emerged as an effective challenger by offering high-quality broadband that offers greater value than traditional cable and telcos. Sky is on track to build a large and successful broadband business and is increasingly well positioned to participate in the rapid growth of online search and advertising."

Eric Schmidt, Chairman and CEO of Google, said: "Today's alliance with Sky brings together two of the most innovative media and technology companies for the benefit of users. We will be delivering exciting new services for Sky Broadband customers all over the UK. We're delighted to team up with Sky in one of the world's most dynamic markets and we look forward to working together in the years to come."

Sky's Internet ambitions have been no secret. Having bought EasyNet last year it began rolling out free broadband to its subscribers in July. Most recently it took a £1bn stake in ITV to brush off NTL's ambition of getting into the broadcast TV game.

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