It has a pact with Verizon Wireless, and it's promising more deals
Video has a promising future on mobile phones. But it's hard to imagine that future will look much like the deal Verizon Wireless struck with YouTube last week.
Worth watching on a phone?
Starting this month, Verizon customers who pay $15 a month for the company's V Cast video service also can pick from a limited selection of videos from Google-owned YouTube. Or they can pay for a $3 daily pass. Will people pay for a limited version of YouTube? Probably not many, predicts Gartner analyst Tole Hart.
The major U.S. cellular carriers are spending billions of dollars upgrading to third-generation wireless networks so they can offer multimedia services such as video and music downloads. T-Mobile is the latest to join the 3G race, partnering with Nokia and Ericsson earlier last week to build its network.
Carriers don't have the business model down. Getting a big-name partner isn't always enough. Case in point is Mobile ESPN, a mobile virtual network operator that failed despite its fresh sports content and a killer brand.
The deal with Verizon Wireless is YouTube's first major mobile pact, but it promises many other partnerships. The price seems steep to watch a limited video supply on a tiny screen. But who thought people would pay $2 to $3 for a 15-second ring tone? Let the video experiments begin.
The Business of Going DigitalDigital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
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