In the ongoing effort to monetize, YouTube is now testing letting partners offer downloadable videos. Partners can allow downloads for free or for pay via Google Checkout, which requires a fee.

Partners testing the free downloads are educational, including Stanford, Duke, UC Berkeley and UCTV. Partners testing the paid downloads include users khanacademy, householdhacker and pogobat.

via YouTube Tests Downloading; Offers Creative Commons – Search Marketing News Blog – Search Engine Watch (SEW).

Image: Search Engine Watch

This is a great way for not only YouTube to make money off the talents of the masses, but also for the masses to be able to finally monetize the viral videos that often take lots of effort to produce.

This downloading capability will also probably spur the growth of more innovation an creativity through re-mashing of downloaded videos.

Another positive point to the video downloading is that it will give Apple’s iTunes a run for its money. Competition is always good.

I know I look forward to seeing where this development takes us. What are your thoughts. Post them below.