The parallels between an existing media company’s business model and the one that Google is pursuing are pretty strikingly similar, writes GigaOM columnist Robert Young.
Money make do serious work: rule, rule, rule.
“Google’s efforts to strike content deals with the major media companies, on behalf of their YouTube division, seems to have hit a wall. Viacompulled all their video clips, NBC accused them of “Mafioso” negotiating tactics, CBS backed off at the 11th hour of deal talks, while Fox and NBC continued to push their vision of launching a big media-backed YouTube competitor.”
“At the center of such a forthcoming deal will be, of course, money. Specifically, the minimum amount of dollars that Google will guarantee the media company for every year of the deal term. Rumors are that they offered the old media giants as much as $500 million of guaranteed revenues per year, but it wasn’t enough.”
“You start to wonder what will stop Google from … cutting out the broadcast networks as middlemen.”
Google video: youtube refreshing.
Google video: video and mobile search from Google.
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