Reuters reports that British satellite broadcaster BSkyB said on Wednesday it will partner with Google for search, advertising and video on its broadband service.

Sky said it would launch an online user-generated video content site, its own e-mail service and a search portal. Revenue generated by click-throughs on sponsored advertising links will be shared between the two firms. Google recently bought YouTube for $1.65 billion.

BSkyB said it is also looking at launching a product which would enable users to make calls over the Internet — similar to that offered by Skype.

“Google is committed to giving people the power to explore, create and communicate. Today’s alliance with Sky brings together two of the most innovative media and technology companies,” said Google Chairman and Chief Executive Eric Schmidt.

Earlier this week former British telecoms monopoly BT Group launched its long-expected move into the content with a host of deals with Hollywood film studios, record companies and sports broadcasters to show their content over its new TV and video over Internet offering.

Sky had problems with its fledgling on-demand film and sport download service in August. It was forced to shut down the service for three months after the software provided by Microsoft was cracked, enabling the digital protection to be stripped, reports Reuters.

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