Google Abandons Web Video Sales

Google is shutting down a service that sold and rented online video, ending a 19-month experiment doomed by the proliferation of free clips on other web sites like Google’s own YouTube subsidiary. The decision, confirmed late on Friday, underscores Google’s intention to concentrate its financial muscle and brainpower on developing an advertising format to capitalise on the immense popularity of online video. YouTube, which Google bought last year for $US1.76 billion, is expected to be the focal point of the company’s expansion into video advertising. Google executives hope to settle on an effective advertising system for video ads by the end of this year

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