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(Continued)     The RFS Newsletter, Mar. 10, 2007. Page 3
Negotiations with YouTube stemmed from the basketball league's original partnership with Google. "Obviously, we came to the deal through Google," said Steve Grimes, NBA's v.p. of interactive. "Would we have ended up here any other way? It's certainly possible. However, the Google connection is what made it happen in the time frame it did." In 2006, Google and the NBA have paired up in a one-season deal, in which Google sold NBA games on video.google.com for $3.95 each.

Though that service has ended, the NBA has since moved on to be part of a new advertising test with the search giant. Google is taking videos made by the NBA, as well as Sony BMG Music Entertainment, Dow Jones, Conde Nast and others, complementing them with commercial advertising and distributing them to a network of Web sites. In the three-tier deal which began in February, Google supplies a Google-branded video player that runs both the clips and the advertising itself.

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