Two weeks ago, Google batted around the idea of free cell phones backed by
targeted advertising. Google CEO Eric Schmidt remarked that consumers would
be spending as much as ten hours daily on cell phones (even
though studies say otherwise), which would make targeted advertising
feasible.
YouTube, Google's newest acquisition,
along with Verizon are also betting heavily that consumers will be glued to
their cell phone's tiny screen. The two have announced that select
YouTube video clips would be available through Verizon's Vcast wireless
media service.
Vcast is available on select Verizon phone for a monthly fee
of $15 USD and provides users music, video and game downloads. "Vcast subscribers tend to be higher-value customers in terms
of ARPU (average revenue per user) versus traditional voice subscribers,"
said Verizon marketing director, Robin Chan.
Customers will not only be able to download YouTube content, but
they will also be able to upload video footage from their cell phones to the
site using a five-digit pen number instead of a keypad-unfriendly email
address/password combination.
Verizon is hoping that the YouTube deal will help boost
subscriptions to its Vcast service. While over 20 million of its customers have
Vcast-enabled cell phones, only around 2 million actually subscribe to the
service.