Metue.com

Scratch pay per view video from AOL’s list of services. After a year of effort, AOL confirmed Friday they were scrapping their in-house service and instead opting for a partnership with Amazon and their Unbox video download store.

AOL’s Senior VP of Video explained to the A.P. that they are shifting their focus" toward an advertising business." Pay per view video didn’t fit in to that model so they decided to cut it loose.

Instead, AOL will integrate links to Amazon and also may house some Amazon content on AOL Video. The two companies will share revenue from the venture (Details or terms of the cash split weren’t disclosed.)

For AOL the deal will allow them to remain focused on their two core goals: 1. building a library of free streaming content (AOL Video is unique in offering video from all 4 major networks. They even have Hulu affiliate content); and 2. Making their Truveo video search tools prominent in the marketplace.

While Amazon has previously partnered with TiVo and secured major network content (NBC Universal), this will arguably be the first truly high exposure distribution deal for the Unbox store.

The partnership is effective immediately. Results can already been seen on AOL’s video site.

Related Articles
•Amazon Unbox Shakes Hands with NBC Universal
•Hulu Rolls into Beta
•Amazon Unbox and TV: Video downloads that Bypass the PC
•Possible iTunes Movie Rentals?