Satellite broadcast provider British Sky Broadcasting and Google on Wednesday said they had partnered to provide customized web services to BSkyB broadband customers and would share advertising revenues, reports the Associated Press. Financial details of the deal were not disclosed.

BSkyB said it would roll out a user-generated video portal powered by Google's video editing and content tools; a customized version of Gmail using  the "@sky.com" domain; and search and advertising services. Google will provide targeted search advertising for BSkyB's websites, with ad revenue being shared by BSkyB and Google, according to AFX.

The British firm's CEO, James Murdoch, is quoted by Reuters as saying the first of the new offerings would be up and online by spring - and the rest would follow quickly.

"I've been waiting for this for a while," Google CEO Eric Schmidt is quoted by Reuters as saying at a meeting in London. He also said the deal was also significant because, for the first time, Google is selling the use of the back-end technology of YouTube and Gmail.
 
He said Google was planning similar deals with other large media firms and content providers. "If we can get this structure right over the next few months and it rolls out, then it becomes the index case for every other country and every other operator."