June 23rd, 2006

Google Is SO A Media Company

by Scott Karp

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Now that Google is offering free ad-sponored video content — what we used to call TELEVISION — is there anyone left on the planet besides Eric Schmidt who thinks Google isn’t a media company? I’m sure Rupert Murdoch would love to give his stock price a boost by insisting that News Corp is a technology company.

Google Video

Fox Video

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  • J
    Wrong.

    Google are a data mining company. Advertising is just a convienent revenue source to fund further mining :)
  • So TV networks will want to disrupt Google.

    Google's business is two kinds of adbitrage:

    1) Generate search results and associated ad spaces, and sell the ad spaces for a profit.

    2) Acquire the rights to place ads on other people's content, and sell the ad spaces for a profit.

    Google's "market" for the ad spaces on other people's content is not transparent (i.e., prices are not publicly known).

    All things being otherwise equal, sellers of quality ad spaces will always prefer to sell their inventory at a transparent market, because high and/or rising prices serve as valuable marketing for sellers.

    A TV network can disrupt Google's second source of adbitrage profits, then, by establishing a transparent market for ad spaces.

    Of course, the network will want to maximize the profitability of this effort.

    Enter my business plan for establishing the most liquid online market for customized education and career services.

    An adaptation of the plan is online at http://landof.opportunitv.com.

    The previous version of the plan was circulated internally at Verizon, reaching the Senior VP level. Earlier versions were praised effusively by executives at Amazon.com and Microsoft.

    In particular, the adaptation describes how cross-media entertainment programming can give rise to the most liquid transparent online market for the advertisement spaces on single-creator media (e.g., blogs, vlogs, podcasts), how this market can give rise to the most liquid online market for customized education and career services, how the latter market can give rise to millions of good jobs for U.S. residents, and how these job-holders can dramatically increase educational and economic opportunity for all.

    So now might be a good time to short Google ;-)

    But seriously, let me know if you have any questions, comments, etc.

    Beyond this, I've been reading your blog for a while now. Very good stuff.

    Best,

    Frank Ruscica
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