This post is dedicated to Peter Terew. Shout out to Peter! Whats up?! You better be reading this! You are my biggest fan! (Side note: I love the idea of dedicating any-and-everything to other everythings. For instance, I will now tie my shoe and dedicate it to my fish Violet II, may you not soon realize the same fate as Violet I.)
Today's post is about some news that Google and Universal are in talks to cooperate to build a commercial-provided-content music site. Unlike YouTube (Google's biggest waste of money ever) the content on this site will be professional content, Music videos by Artists signed with Universal Music, provided by license. Sounds to me like a money maker! The interesting thing about free of charge web sites is that they make money from ads, not from users. Ad groups want content that has a specific target audience, and that they know a certain number of people will visit or view. Because of that sites like YouTube are not big ad-money makers, because the user-provided content has no target audience and is unreliable. Sites like Hulu, which is operated by NBC and FOX, and has deals with other TV and Film companies, provide content that has specific target audiences and predictable viewing numbers (same as how they decide what to advertise during the TV broadcast, Beer during sports, Lotion during The Bachelor). Its going to be the same with this new music video site. Brands like T-Mobile, and others that target teens will just at the chance to flash their product before anyone watches the latest music video on demand.
Google/YouTube and Universal:
http://www.reuters.com/article/technologyNews/idUSTRE5240AZ20090305
NBC/Fox vs. YouTube:
http://www.newsweek.com/id/185790
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4 comments:
That is a serious honor you have bestowed upon me. I don't know how to thank you. Although, you did make it seem trivial by telling everyone that you dedicated your shoe tying to your fish. I'll just forget that line. Anyway, there is one thing that I wish you could back up: how is the purchase of YouTube the biggest waste ever?
Peter,
I mean that it is was a huge financial gamble and seems to not have worked out. Here are some numbers from the newsweek article:
Google buys YouTube for $1.65 Billion. YouTube got 89.5 million viewers last year, Hulu got 8.5. YouTube earned $114 million with no profit, Hulu earned $65 with $12 million profit.
All I mean is that $1650 million is a lot to pay and then not make any profit last year.
If you're interested:
http://news.bbc.co.uk/2/hi/technology/7933565.stm
No matter the popularity, YouTube can't afford (or won't?) to pay the new licensing agreement with the Performing Rights Society and (starting today) is blocking all premium music videos to the UK.
Shout to you, James, for mocking the clubbiness of the blog community. I'll link to you if you link to me...
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