Google plans to phase out its Google Video service, making way for its other video property, YouTube.
The company has offered Google Video for almost two years. Like YouTube, the service offered users access to a library of video clips, though unlike YouTube, Google Video also offered content for rental.
The company is now expected to focus its energies on developing effective advertising formats designed to capitalise on the success of YouTube.
Google executives hope to settle on an effective advertising system for video ads by the end of the year, reports the Sydney Morning Herald.
The video section on Google's website will remain open, but paid content will be unavailable from the end of the month.
Customers who have paid for video will be offered refunds in the form of credits for Google's Checkout service.