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Google introducing pay-per-view to YouTube

Stephen Shankland CNET News

Published: 17 Apr 2009 09:59 BST

Google plans to build payment mechanisms into its video-sharing site, YouTube, which so far has been a free, advertising-supported service.

"With respect to how it'll get monetised, our first priority is on the advertising side. We do expect over time to see micropayments and other forms of subscription models coming as well," said Google chief executive Eric Schmidt after the company reported first-quarter profits on Thursday. "We'll be announcing additional things in that area literally very, very soon."

The change in tactics will mark a new era for Google's attempt to make money from YouTube. The service is tremendously popular, but also tremendously expensive to operate, and Google has been working hard for months to come up with a more successful financial formula for sharing video.

Schmidt's words came at the same time Google is signing a partnership to show Sony Pictures's full-length movies and build a section of YouTube devoted to professionally made content.

Google has had fractious relations with companies that produce video, but that is changing now, Schmidt said. "We are making very good progress now with small, medium, and even large-scale studios," he said.

Credit: Google bringing pay-per-view to YouTube from CNET News