YouTube signs exclusive deal

YouTube has signed an exclusive deal with Verizon to distribute YouTube content in the US for a 'limited time'. The move suggests similar deals will be done with other carriers globally. I reported earlier this month that YouTube is rumoured to be in talks with O2. On Monday Vodafone told me that the firm had 'probably' talked to YouTube.

Patrick Parodi, Sales Director, Amobee says the deal is worth watching: "User Generated Content (UGC) is one of the most exciting trends on mobiles. But to be honest I didn't think that the likes of YouTube, MSN, Google, and Yahoo would be jumping on the mobile bandwaggon this year. The big question now is how advertising is handled and to what extent it is contextual. I wonder if Verizon realises how key its role in providing that kind of advertising is now that it has done the YouTube deal."

Verdict: YouTube and Verizon are staying mum on how this deal cuts. As more such deals roll out we are likely to learn more and will be able to evaluate whether UGC players are taking the upper hand on the management of ads on their services.