The New York Times is reporting that Google is no longer interested in selling video content to users through the Google Video Service.
From the New York Times article…
After buying the video-sharing site YouTube nine months ago for $1.65 billion, Google plans to stop selling television shows on its homegrown video site. The company will stop offering download-to-own and download-to-rent programs on Wednesday, according to an e-mail message sent to customers yesterday…
There has been some speculation that while Google is offering refunds to it’s users, those refunds are only available in the form of Google Checkout certificates.
Here is another quote that I feel is more telling on the matter…
Google’s decision to close the retail part of its video site indicates the company had less success selling content than attracting advertising spending, which accounts for 99 percent of revenue. The purchase of YouTube, where the videos are all free, catapulted Google from seventh to first among video-sharing providers on the Web.
While some may say that this is a mark of failure on behalf of Google, one could certainly argue that the acquisition of YouTube greatly changed the landscape of video on the web, and ultimately, Google’s ability to profit from video distribution.
