Global deployment

Under the plans, BSkyB will launch a user-generated video service that will run off Google's video content tools. Google recently bought the market leader in user-generated videos YouTube for $1.65bn.

BSkyB will also offer a customised version of Google's Gmail e-mail service.

Any revenues generated by directing BSkyB consumers to websites via sponsored advertising links will be shared between the TV firm and Google, the companies said.

"Sky will be Google's first partner globally to deploy Google's suite of search, advertising, communications and video services," the companies said.

James Murdoch, BSkyB's chief executive, said: "These agreements will bring Sky customers a valuable set of services from the world's leading search company."

Changing markets

Media and internet firms are increasingly looking for ways to enhance their businesses and offer a broader range of services to consumers.

On Monday, BT announced a tie-up with Irish sports broadcaster Setanta that will allow it to broadcast live Premiership football matches.

The deal was a vital element of its new Vision television service, which it hopes will turn it into a full-blown multimedia company.