TEXT OF STORY

MARK AUSTIN THOMAS: Google has signed what it says could be its most lucrative deal. The Internet search company has forged an alliance with British TV company BSkyB. From London, Stephen Beard reports.

STEPHEN BEARD: Under the deal, Google will help BSkyB develop its new broadband service. That will mean providing subscribers with e-mail, Internet phone calls and user-generated video.

This will be the first time that Google will license the software it acquired when it bought YouTube.

There is an ultimate prize, say analysts: full-length feature films on demand, delivered swiftly over the internet.

Barry Fox of New Scientist magazine says Hollywood will be watching the Google BSkyB alliance with interest.

BARRY FOX: Of course Hollywood’s long term aim, wish, desire is to be able to push movies into our home without having to go to all the expense and trouble of pressing them on discs.

Google says that it chose Britain as test-bed for its new venture because broadband penetration and speeds in Britain are among the highest in the world.

In London, this is Stephen Beard for Marketplace.