Watch MTV with ... Google
TV channels have long closely monitored the proliferation of online video with a shy look. Many authentic video sites are "thieves", offering clips of copyright infringement, public theft, and massive advertising revenue from the station.
However, until recently, television suddenly saw another aspect of Internet Video - a potential partner.
The latest contract between Google and MTV Networks is a prime example of this new perspective. Under the agreement, MTV will provide program and promotional video clips for member websites in Google's AdSense network.
Ad revenue will then be shared equally for Viacom (MTV's parent company), Google and its member site owners. Google's website itself will sell MTV video clips for $ 1.99 / clip.
Just started
Source: wirehub Google claims the company wants to be a "technology platform", helping media giants to open new channels of issuing and making money. But there have been times when the media did not want Google - or any other technology company - to play such a big role.
NBC and CBS once asked sites like YouTube to immediately remove copyrighted content. Others are playing "Closing", blocking exclusive content on their own sites, refusing to grant licenses or posting them on external websites.
" The media always wondered: Is the Internet friend or foe? " Said Benjamin Schachter, an analyst at UBS. " Google contract is an important strategic step in the right direction ".
Most likely this is just a prelude. Analysts, advertisers and video-specialized websites all see a bright future - where content owners (from professional TV channels to computer users with funny homegrown clips) hilarious) will allow companies like Google to release the program clip online, selling ads that accompany the clip.
Remember that many websites are trying to jump into the video game. Revenue from online video is expected to reach USD 385 million this year and boomed to USD 1.5 billion in 2009.
Profit distribution
Currently, Google only releases videos and advertisements for only one MTV channel. Therefore, the company only received nearly one-third of advertising revenue. This amount will have to be divided equally for users of the Google AdSense service.
In the future, Google hopes to be able to sell ads on its own and earn more profits. Some rival sites with Google Video have promoted this.
For example, Time-Warner's AOL sold ads before video clips for more than a year. On its new video site (launched last week), ads appear in front of nearly all content. Some are sold by AOL, others come with the original clip provided by the partners.
Inevitable trend
Analysts all predict that in the future, carriers will become more open to the Internet. They will screen and release their exclusive content online and share profits with technology companies.
" Remember the case of digital music. The Internet has shown it to be an unstoppable force, and therefore, we have to adopt a more flexible, different approach ."
The approach is that both the media and the Internet business need to shake off the idea of monopoly. Both AOL and Google shook hands with MTV. This is understandable because MTV wants more and more people to watch the ad and access the mtv.com site as much as possible. Meanwhile, AOL and Google are not foolish but refuse to eat to mouth.
Immediately after the contract between Google and MTV, many other sites immediately hunted for a similar deal. Guba is an example. " We want to shake hands with a popular TV channel like MTV, " said executive director Thomas McInerney, noting that the deal will be announced next quarter.
Similarly, Google's rival - Yahoo is also tired of looking for partners. Yahoo's general manager of social media Jason Zajac said the company would " closely monitor Google's testing service to calculate its own project ".
" Google and MTV are the first stage. In just one year, we will see an explosion of Internet video market. determined.
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