Although this won’t be the full fledged debut that we in the industry were waiting especially after a little unknown company called Orb has debut in this market.
Its still a tentative step by the YouTube who it seems is still testing the waters.
The companies are planning to announce this deal on Tuesday and this service will be available in the month of December. According to the deal the editors in the YouTube will select short videos from the library for Verizon to distribute and the subscribers will have to pay the monthly rental of $15 to use this service.
Verizon will distribute these videos through their wireless service called VCast. The Verizon wireless is a joint venture of Verizon Communications Inc. and Vodafone Group PLC of Britain.
Explaining the logic behind this deal the Chief technology Officer and the Co-founder of YouTube Steve Chen said,
‘Everybody carries a phone with them, but they may not have a computer. People can take the phone out of their pocket while waiting for the bus and watch a video’.
Although they did not revealed the financial terms of the deal but said that Verizon will have exclusive rights to distribute YouTube videos but for a limited time only.
In an interesting comment which hints at the future plans of YouTube senior director of business development for YouTube, Kelly Liang, said,
‘This marquee partnership is the first of many.’
He further said that the company is planning more such deals in the future.