Vuclip will soon be powering UC Web browser’s video channel for India, the company has announced. This deal gives Vuclip them access to UC Web’s user base, something which websites typically pay for. Browsers monetize by selling search engine integration to companies like Google and Bing, and “Speed Dial” buttons, which includes default buttons on the loading page. However, Vuclip hasn’t paid UC Browser for this inventory, and according to Nikhil Naik, Vuclip’s Director, Global Content and Distribution, there is no money changing hands. The challenge for UC Web, according to Naik, was that while the browser, just as Opera and One Browser do, compresses websites for reducing cost and time of access for users. “What we are doing with UC Web is at a product level, where we’re integrating with them to bring our content and video optimization to their browser. Both of us are in the business of enhancing the user experience, and letting people experience videos in a 2G environment.”

Keep in mind that Vuclip’s transcoding and compression technology will not be available to UC Browser; it’s just that users will have access to compressed videos on Vuclip. We found it a little odd that UC Web is giving premium real estate for nothing, but Naik believes that there’s value for both companies. UC Browser is essentially a channel partner for Vuclip, which also distributes its videos via telecom operators and Nokia. Previously, it had a tie-up with UC Web competitor Opera.

Vuclip will monetize these videos through mobile advertising and by upselling premium videos on their website. Naik told MediaNama that Vuclip charges advertisers for sponsorship, discouraging the performance based advertising, but the eCPM rates range from $1-3.

Vuclip aggregates content from over 140 content providers across several genres like movies, music, news, sports, celebrity and devotional among others.

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