Google is reportedly considering expanding into the pay-TV space by adding a video service to its high-speed Internet project in Kansas.
According to the Wall Street Journal, unnamed sources have confirmed the Internet search giant has been in talks with major TV players, including Time Warner, Discovery Communications and Walt Disney.
Google is reportedly looking to break into the TV advertising market, and could potentially undercut the subscription fees of existing pay-TV providers.
Google is currently building its own ultra high-speed broadband network, Google Fibre, in Kansas City, and is rumoured to be using it as a platform to experiment with Internet on TV and bundled video, Internet and telephony services.
Key to its plans is making deals with celebrities and others for ad-supported online video content.
Google reportedly declined to comment on the speculation regarding its pay-TV interests, but issued a statement saying only: “We're still exploring what product offerings will be available when we launch Google Fibre.”
Disney deal
In the meantime, according to the New York Times, Google and Disney will today announce a deal between Disney Interactive Media and YouTube for a co-branded channel on Disney.com and YouTube. The deal will fund an original video series to be screened on the new channel.
At the end of October, YouTube said a number of new original content channels would be launched on the service.
“We're announcing that even more talented creators and original entertainment will soon join YouTube's existing channel line-up, including channels created by well-known personalities and content producers from the TV, film, music, news, and sports fields, as well as some of the most innovative up-and-coming media companies in the world, and some of YouTube's own existing partners,” said YouTube on its official blog.
The first of the new channels are due to go live this month, but YouTube is yet to confirm what the channels will be.
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