Sky pulls out of talks to show digital TV content on YouTube

Plans to make shows from Sky available for free on YouTube have collapsed after the broadcaster pulled out of talks with owners of the video-sharing website Google.

The news comes in the same week as Sky's largest shareholder - Rupert Murdoch's News Corp - accused Google of "stealing" content and threatened to stop the US giant from linking to its media.

According to The Daily Telegraph, the proposed deal would have had Sky making its full-length shows, such as Soccer AM, available for free on YouTube.

However, the talks ended when Sky decided that it would not allow Google to broadcast its content free of charge.

A Sky spokesman said: "The pay model is at the heart of our business and allows us to invest significantly in high-quality, distinctive content."

Sky said that it will continue to offer clips of its shows on YouTube but will not allow internet users to watch any full-length programmes for free.

The broadcaster currently makes most of its programming available on the internet via SkyPlayer, its version of the BBCs' iPlayer.

However, only Sky digital TV subscribers are able to watch for free. Those who are not Sky digital TV customers can pay to subscribe to SkyPlayer or rent individual programmes.

Google refused to comment on negotiations with Sky but a spokesman said: "We are, of course, always talking to rights holders large and small about the distribution and revenue opportunities for their content on YouTube."

It is thought YouTube has offered content owners up to 70% of the advertising revenue generated from showing their programmes on the site.