Google Video Closing Down The Paid Model

Google Video will no longer be offering paid rentals and downloads in 4 days from now. Previous videos will no longer work too. To reimburse Google Video customers, Google is giving those customers $2 off coupons on Google Checkout.

The actual message sent was:
“Hello, As a valued Google user, we’re contacting you with some important information about the videos you’ve purchased or rented from Google Video. In an effort to improve all Google services, we will no longer offer the ability to buy or rent videos for download from Google Video, ending the DTO/DTR (download-to-own/rent) program. This change will be effective August 15, 2007. To fully account for the video purchases you made before July 18, 2007, we are providing you with a Google Checkout bonus for $2.00. Your bonus expires in 60 days, and you can use it at the stores listed here: http://www.google.com/checkout/signupwelcome.html. The minimum purchase amount must be equal to or greater than your bonus amount, before shipping and tax. After August 15, 2007, you will no longer be able to view your purchased or rented videos. If you have further questions or requests, please do not hesitate to contact us. Thank you for your continued support. Sincerely, The Google Video Team Google Inc. 1600 Amphitheatre Parkway Mountain View, CA 94043″

This move indicates that Google did not have much success using a pay-per-video model. This move somewhat contradicts the YouTube model where videos can be seen for free. I’m assuming that Apple has the lead market share for the pay-per-video model through iTunes.

G4′s Attack Of The Show made a parody of Steve Jobs making fun of Bill Gates and as you watch towards the end of this video, Jobs calls out Google for selling a pay-per-video model. The Jobs parody stated, “Oh and one more thing, @(#* you Google Video. Oh, you’re going to start selling downloads of television shows for $1.99. Hmm, I wonder where you got that idea from, Google. You going to be swiping my operating system like Mr. Dancie Pants?”

[youtube]http://youtube.com/watch?v=t1tIZ9ua04U[/youtube]

References:
[1] NewTeeVee: Google Shutting Down Paid Video
[2] The New York Times: Google Is Closing Its Video Retailing Operation

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