Google: What Does The Future Hold?

Obviously, an important part of SEM is being able to look forward are predict where the market is going.

The YouTube deal has had a lot of press, and commentators have been trying to work out what it all means. The Motley Fool examines the deal from a financial and legal perspective. Part 1 and Part 2. Warning: the article has some annoying logins.
Quick summary:

  • Copyright – will it be an issue? Google is used to fighting these battles, so what’s one more to the pile?
  • Do you expect these lawsuits to increase – “I think Google is going to try to head those off by entering into friendly deals with content providers”
  • “I think Mark Cuban is shooting from the hip….the whole copyright issue is not about whether or not Google can do what it is doing. It is about whether it needs to pay royalties for doing so”.
  • The deal was risky, possibly the biggest risk Google has taken. YouTube has little revenue, and it reamins to be seen if internet video will go the way of television: i.e multiple providers, distinct content-driven brands
  • This deal is about mindshare, and Google are pusuing mindshare agressively. Surely part of the reason Google purchased YouTube was to prevent Yahoo! & Microsoft from doing so.

One thing I haven’t seen mentioned much is the value of the user profiling. Google will know what interests you, and can package up video content to suit you. That’s pretty powerful data.

Here’s my prediction: I’m wondering if a deal with Sony (Playstation) will be a likely move for Google in the future? Microsoft has an ad distribution network (XBox) that Google do not yet have.

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