From Reuters (http://today.reuters.com/news/articlenews.aspx?type=technologyNews&storyID=2006-11-28T113911Z_01_N27190861_RTRUKOC_0_US-YOUTUBE-VERIZON.xml&WTmodLoc=NewsArt-C2-NextArticle-1):
By Sinead Carew and Yinka Adegoke
NEW YORK (Reuters) - Verizon Wireless said on Tuesday it would deliver selected video clips from YouTube to cell phones starting in December in a bid to increase subscriptions to its mobile media service.
YouTube, the leading online video sharing site which was bought by Internet search leader Google Inc. this month, said it hopes to expand beyond computers to phones. It did not reveal the financial terms of the deal.
Verizon Wireless, a venture of Verizon Communications Inc. and Vodafone Group Plc, has been betting increasingly on text messaging and advanced services like music and video for growth as phone call prices keep falling.
But so far only a small minority of U.S. consumers use features like video on their cell phones. Verizon Wireless hopes the huge popularity of many home videos shown on YouTube could help boost use of its Vcast wireless media service.
"The user-generated content space is a very important sector in media," said Robin Chan, marketing director at Verizon Wireless, who believes the deal could help increase its service revenue.
"Vcast subscribers tend to be higher-value customers in terms of ARPU (average revenue per user) versus traditional voice subscribers," Chan said.
Under the YouTube agreement, consumers who pay a $15 monthly fee for Vcast will be able to use their cell phones to view consumer-generated content posted on YouTube's Web site.
Chan also said customers would also be able to post videos from their phones to YouTube more easily than before by using a five-digit short code instead of an e-mail address.
Verizon said about 20 million of its customers have phones that could support Vcast. But only about 10 percent of these phone users have subscribed to Vcast, according to estimates from Ovum analyst Roger Entner.
YouTube said the pact with Verizon was exclusive for a short period. It did not say when it would be free to pursue additional deals with other wireless providers.
YouTube, which gets more than 100 million views of its videos a day, is exploring whether it can integrate YouTube into a variety of handheld devices with Internet connections.
"Mobile is just one of the things we're looking at," said YouTube's co-founder, Steve Chen. He did not give details.
AND
From San Jose Mercury News:
(http://www.mercurynews.com/mld/mercurynews/news/breaking_news/16110496.htm)
YouTube in deal with Verizon
By Sarah Jane Tribble
Mercury News
YouTube plans to announce a deal with Verizon Wireless today to bring user-submitted videos from the Web to mobile phone customers nationwide, marking the biggest marriage yet between a video Web service and mobile phone carrier.
The deal, in which no financial details were released, means customers who use Verizon Wireless' V Cast video and music service will be able to access some of the popular Web site's videos from their mobile phones, starting next month.
YouTube cofounder Steve Chen called this the company's ``first move into the mobile space'' and said his goal is to make sure all mobile phone users have access to the videos. He declined to say how long an exclusivity arrangement with Verizon would last.
``The great thing about the emerging new phones, they all come with the ability to take pictures and video at the same time,'' Chen said. ``Now everybody with a cell phone in their pocket will be able to upload it without going back to their computers.''
Only pre-selected high-quality videos will be available for viewing on Verizon's YouTube channel. Users are also be able to upload to the YouTube Web site after shooting video on a Verizon phone. YouTube, which was founded in February 2005, reports 100 million video views a day.
Industry analysts said other carriers are expected to quickly follow suit by pairing with YouTube or finding other partners to create content for the nation's 219 million mobile customers.
``This area has a whole lot of potential, if you think beyond ...voice and text messaging,'' said Kanishka Agarwal, vice president of new products for research firm Telephia. ``All the major service providers who cater to the consumer household are trying to capitalize on extending their content.''
So far, mobile companies have found success with voice and text messaging services but struggled to find people willing to pay for video services. Verizon's deal with YouTube -- which is so popular that Google agreed to buy it for $1.65 billion earlier this year -- bolsters the growing belief that mobile video will both find a market as well as begin making profits, Agarwal said.
Mobile video services like Emeryville-based MobiTV and other television services for Web have reached 5.1 million subscribers in the third quarter of 2006, which is about double the number who used the services during the first quarter, Agarwal said. In addition, he said, revenues for mobile video caught up with revenues from mobile gaming in the third quarter, bringing in $140 million.
Mobile phone users are asking for more content and YouTube fits what they want, said John Harrobin, vice president of digital media and advertising for Verizon Wireless.
``We absolutely believe in the YouTube dream and recognize that among the content that performs best on our entertainment network is really that water cooler, snacking content that YouTube is famous for producing,'' Harrobin said. ``People get lost in YouTube.''
To be sure, YouTube and Verizon have something to offer each other, said Mike Goodman, program manager for digital entertainment with Yankee Group.
``It provides Verizon with significant new content experience and there's an advantage for YouTube as well as it increases their audience,'' Goodman said.
It's no accident that YouTube seems ideal for mobile, Chen said. The company talked about it within months of launching.
``Other than the desk top there are few other places content is being viewed. The mobile handset is ideal,'' Chen said. ``There are a lot of times where you just want to be entertained for a few minutes.''