Synergy! YouTube & Google Checkout & Cracking That Success Question

The Internet’s abuzz with news that YouTube finally has a business model…I mean, that YouTube has a new feature where producers can let people download their videos and even buy them using Google Checkout.

Google, of course, charges transaction fees for Google Checkout (though you get a break if you’re a Google Adwords client.)

So there you go, YouTube, which has been struggling to find ways to make money, has a new revenue source…..And because YouTube is using Google Checkout, it might give that service a much needed boost.

According to Rosetta, an interactive marketing agency, Google Checkout is struggling with retailer adoption. A survey of 100 online retailers by Rosetta showed that Bill Me Later is used by 26% of the retailers, PayPal by 25% and Google Checkout by 11%. About 7% use all three.

Then again, will YouTube’s new service really help the two services? Well, we have to start thinking about YouTube as a different kind of service. Because it’s doubtful people would pay much for short clips. And it would likely have to be videos from the major studios and networks, and up until now, the market for paid downloads hasn’t been particularly robust. Forrester Research even proclaimed that it had peaked last year because people aren’t willing to pay and that producers would move to…ad models.

Back to where YouTube started?

Before it's here, it's on the Bloomberg Terminal.