October 9th, 2006

Google Acquires YouTube, Becomes the Archetypal Media Company

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Google’s $1.65 billion acquisition of YouTube solidifies Google’s position at the center of media. Google already has Google Video, so they didn’t buy YouTube for the technology. No, they bought YouTube for the traffic, the same reason they cut the $900 million deal with Fox Interactive Media.

So don’t believe Eric Schmidt for a second — Google is now the archetypal media company — online video is just the next step in their quest to monetize the world’s content through advertising. The challenge for Google is that video ads are at the opposite end of the annoying/consumer-hating spectrum from text ads.

Google’s acquisition of YouTube is also the final step in the orphaning of content creation, which now exists completely separate from content distribution and monetization. You supply the content — Google will take care of the rest.

The content business just ain’t what it used to be.

UPDATE

Relfecting deeply on the Google/YouTube deal, Andy Kessler asks:

What is media anymore? Can you just slap videos up on the Web and become a younger and more vibrant Rupert Murdoch or Sumner Redstone?

I’ll add: Does media have anything to do with content anymore, or is it all about aggregating people’s attention by any means? Was media ever really about content?

Comments (26 Responses so far)

  1. point where online content providers from big media companies to individual media netcasters have embraced it in various forms. The concept of “media company” may be the context in which Google should be considered. Publishing 2.0 blogger Scott Karp wrote that the YouTube acquisition “solidifies Google’s position at the center of media.” “Google is now the archetypal media company – online video is just the next step in their quest to monetize the world’s content through advertising,” said Karp. “You

  2. in a typically insightful post

  3. point where online content providers from big media companies to individual media netcasters have embraced it in various forms. The concept of “media company” may be the context in which Google should be considered. Publishing 2.0 blogger Scott Karp wrote that the YouTube acquisition “solidifies Google’s position at the center of media.” “Google is now the archetypal media company – online video is just the next step in their quest to monetize the world

  4. Scott Karp, in a typically insightful post, lobs a grenade disguised as a statement-in-the-form-of-a-question at the end of the post. He writes, “Does media have anything to do with content anymore, or is it all about aggregating people’s attention by any means? Was media ever really about

  5. An old colleague at Poynter used to hate it when people used the words “media” and “news” interchangeably. Not the same thing, he’d say. News implies standards, values, a mission; media is just… blah. Now, over at Publishing 2.0, Scott Karp cites this bit of reflection from Andy Kessler: Who are the next media moguls and to whom do they have to sell their souls for the priviledge? The $165 billion question left unanswered by this deal is: What is media anymore? Can you just

  6. Google?s acquisition of YouTube is also the final step in the orphaning of content creation, which now exists completely separate from content distribution and monetization. ” –Scott Karp, writing in Publishing 2.0, in a scary but brilliant post on the deal of the moment.

  7. link]

  8. a point where online content providers from big media companies to individual media netcasters have embraced it in various forms. The concept of “media company” may be the context in which Google should be considered. Publishing 2.0 blogger Scott Karp wrote that the YouTube acquisition “solidifies Google’s position at the center of media.” “Google is now the archetypal media company – online video is just the next step in their quest to monetize the world

  9. Media is still all about content. YouTube has something for everyone! It’s got stuff tons and tons of people want to see, like the Simpsons or South Park, things that pretty large groups want to see, like old shows from their childhood or videos of minor celebrities, surf and skate videoes, and it’s got stuff that maybe 4 people on the whole planet want to watch. It’s still content! But now it’s about choice.

  10. [...] Sigue la noticia en mi blogosfera personal: Publishing 2.0 Enrique Dans Retiario Genbeta Read/Write Web Microsiervos Error 500 Scobleizer Wired News [...]

  11. . Yes, I think it’s over priced. Having the industry titans fight over you helps though.

    2. Very good for the Start up scene. This type of exit is more effective then any presentation.

    3. It’s not the last or highest.

    4. Google is probably the only player that doesn’t have to show ROI, Share price will go up no matter what.

    5. It’s a defining moment for the industry. Seriously. I’m glad Google bought YouTube, it’s a good fit. Let’s see what kind of advertising model they will spin out of it. The better and more profitable it is – the better off we all are.

    6. Check out what Mark Cuban has to day. Before AND after.

  12. [...] The concept of “media company” may be the context in which Google should be considered. Publishing 2.0 blogger Scott Karp wrote that the YouTube acquisition “solidifies Google’s position at the center of media.” [...]

  13. You supply the content — Google will take care of the rest

    including make a boatload of money for themselves.

    I’m getting very tired of the “gift economy.” It’s getting to be an awful lot like “trickel-down economics.”

  14. [...] Google acquires YouTube for $1.65 billion in stock and everyone’s hearts are a flutter. There’s been much grousing about what this means (see Memeorandum), but like damn near always, I find what’s missing is a historical perspective. Google acquired large particiaptory media companies in the past. Think Blogger. Think DejaNews. This fits what has always been in the company’s DNA. A recognition that the web is social software. The frightening thing is that companies are liable to take the wrong lessons from this. Time for everyone to take a deep breath. For some interesting thoughts see Scott Karp, Scott Rosenberg, Niall Kennedy, Susan Mernit, lostremote, and Don Dodge. [...]

  15. [...] With a lot of attention paid to the big number, $1.65 billion, there are some other numbers that illustrate Google’s interest in YouTube much better than the price tag. I was thinking of the immortal words of Socrates, when he said, “I drank what?” — Chris Knight on self realization, in 1985’s Real Genius Google CEO Eric Schmidt probably isn’t having second thoughts about the acquisition of YouTube. The company gained some significant traffic with video, and more importantly picked up a massive playground for testing video advertising. “In acquiring YouTube, Google has, in one fell swoop, increased their number of video streams – and potential ad revenue from streaming – tenfold,” said Gian Fulgoni, comScore chairman. ComScore claimed it measures actual video streaming activity, as opposed to market share of sites, and can better assess the online video arena. By the comScore numbers, Google will see a huge jump in the video streams people in the US view from their sites. In July 2006, Google delivered some 60 million streams to visitors. YouTube dished out 649 million in the same period. More than 106.5 million US visitors viewed video content for the month. Plenty of promise for Google’s video advertising aspirations, whatever they may be, exists. The importance of online video has reached a point where online content providers from big media companies to individual media netcasters have embraced it in various forms. The concept of “media company” may be the context in which Google should be considered. Publishing 2.0 blogger Scott Karp wrote that the YouTube acquisition “solidifies Google’s position at the center of media.” “Google is now the archetypal media company – online video is just the next step in their quest to monetize the world’s content through advertising,” said Karp. “You supply the content – Google will take care of the rest.” — Tags: Google, YouTube Add to Del.icio.us | Digg | Yahoo! My Web | Furl Bookmark WebProNews: View All Articles by David A. Utter Receive Our Daily Email of Breaking eBusiness News About the Author: David Utter is a staff writer for WebProNews covering technology and business. WebProNews RSS Feed More Top News Articles Contact WebProNews [...]

  16. Media has never really been about content. Sure content plays a role and a major role at that, but as McLuhan pointed out the real punch of “media” is how the technology surrounding its delivery changes the way receive and share information (or content). At their essence media companies are technology companies.

  17. [...] Más que comentar y recomentar la noticia, me parece interesante apuntar a algunos análisis interesantes: Publishing 2.0 | Google adquire YouTube y se convierte en el arquetipo de empresa de medios [...]

  18. Google bought the audience – they have the advertising pool and infrastructure to monetize YouTubes Web pages.

    Of course neither company went into business to become large media concerns but that is what they keenly decided they had become and are now leveraging their ability to deliver a tightly-focused audience to people who want to pay to be in front of them.

    We are in a disruptive time for established mass media. Call it the rise of the niche verticals but developing niche expertise will be critical.

    From the experience I have gathered building social media (and 20 years in print) I can say that not many news execs are savvy yet as to the many ways these new media story assets can be produced, packaged and monetized.

  19. [...] Blogger Scott Karp wrote that the YouTube deal “solidifies Google’s position at the center of media.” He further said that, “Google is now the archetypal media company – online video is just the next step in their quest to monetize the world’s content through advertising.” [...]

  20. [...] Google Acquires YouTube, Becomes the Archetypal Media Company – The story’s pretty short, but I liked this headline and Publishing 2.0. Yes, spare us the argument Google’s not a media company. YouTube is simply another way Google will effectively own lots and lots of media to show ads.   [...]

  21. [...] Otro tema interesante es la filosofía de Google. ¿Simplemente ordena la información o es ya un medio? ¿Se está convirtiendo en un AOL o Terra en el caso español? [...]

  22. [...] The concept of “media company” may be the context in which Google should be considered. Publishing 2.0 blogger Scott Karp wrote that the YouTube acquisition “solidifies Google’s position at the center of media.” [...]

  23. [...] Publishing 2.0 Scott Karp on the Convergence of Media and Technology « Google Acquires YouTube, Becomes the Archetypal Media Company | Home | [...]

  24. [...] The concept of “media company” may be the context in which Google should be considered. Publishing 2.0 blogger Scott Karp wrote that the YouTube acquisition “solidifies Google’s position at the center of media.” [...]

  25. [...] The concept of “media company” may be the context in which Google should be considered. Publishing 2.0 blogger Scott Karp wrote that the YouTube acquisition “solidifies Google’s position at the center of media.” [...]

  26. [...] lu sur : publishing2.com/2006/10/0… "Does media have anything to do with content anymore, or is it all about aggregating people’s attention by any means?" Intéressante aussi la saga d’Andy Kessler : http://www.andykessler.com/andy_... Au fait, c’est YouGoogle ou GooTube ? [...]

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