ITV, UK’s  biggest commercial television network, is soon to sign a deal with Google to provide search services to its soon to be relaunched website, ITV.com. The service was previously provided by Yahoo. The new service will be rolled out by next month to coincide with the relaunch of the website.

The revamped ITV website will let its million of televiewers watch their favorite canned programs through the web via video streaming.

This deal offers potential benefits to both companies involved. On ITV’s side, Google’s involvement in the cross-platform search function of ITV.com could open up possible future advertising and income generating activities using Google’s various services, particularly the use of YouTube as a possible marketplace for ITV’s proprietary clips. ITV could also gain from Google’s advertising program embedded on its search engine services.

For Google’s this deal may mean additional advertising placement avenues through its established advertising program, but more importantly, the deal adds injury to rival Yahoo.

There’s nothing more insulting than being beaten by a rival. And knowing the brains that run Google, this is more of a strategic move, rather than one that’s about income generation.

It would be exciting to watch out, how Yahoo is going to retaliate against Google, or just silently surrender on this one this time.

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Entry was posted on Friday, July 20th, 2007 at 10:18 pm under Uncategorized.

Read more entries by Arnold Zafra.
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