This was going to happen at some point but to many, including me, it came as surprise that it happened so quickly. Select YouTube videos will be available for viewing on Verizon Wireless service called VCast. The extra service will cost cellphone users an extra $15 for content that is normally available for free online. VCast users will be limited to videos selected and approved by the companies that supposedly appeal to "the broadest appeal and the highest entertainment value." I read that as no copyrighted stuff and no videos of lip syncing teens.

The companies said the service would be available early next month. They would not discuss the financial terms of their deal but only that Verizon would have exclusive rights to distribute YouTube videos on mobile phones for a limited time.

This is an excellent deal for YouTube because this is another platform to get its stuff on, thus better for its users, thus better for YouTube. It also will be far ahead of its competitors in reaching this potentially huge market. However, part of the YouTube charm is in its design. That social networking so well executed on the web will be hard to recreate on the cellphone. We will have to wait and see.

For Verizon, they get to sit cosy to the popular kid in high school, however briefly. If this does take off, it could be an incredible money maker. However, I get the feeling that this might be a little too early. Neither of these companies will lose much from the deal but instead if it does fail, we will have pundits saying how videos don't work on mobile platform. Nobody has yet to see a well executed mobile music platform which is still the more profitable than video.