Google (GOOG) tunes out on paid video

Google Inc. (NASDAQ: GOOG) certainly likes to experiment. In fact, it's tough to keep up with all the new-fangled ideas.

One example: online video rentals (which got its start about 19 months ago).

Well, after testing the market, Google is now bowing out (tomorrow is the final day). Funny enough, a problem has been free sites, such as Google's YouTube.

I had a chance to talk to Chase Norlin, who operates Pixsy (an online video aggregator). According to him:

"The closing of the Google video marketplace exposes two basic realities about the online download business: 1) Apple Inc.'s (NASDAQ: AAPL) iTunes ultimately dominates the market with most of that success coming from music and popular TV shows (not customer generated content or full length movies that no one wants to pay to watch on their computers), and 2) The pay-per-download market, as it pertains to non-music content, is suspect at best. Ultimately, it's the all-you-can-eat model that will win the day here for most non-premium content. The premium content download business (e.g. feature length movies) will be driven by new entrants like Comcast Corp.(NASDAQ: CMCSA) and Netflix (NASDAQ: NFLX)."

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.