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Google Video – is profitability near?

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In today’s Wall Street Journal, Kevin Delaney and Matthew Karnitschnig take up the issue of Google’s vision for its online video business. As many of you know, Google bought you-tube last year for $1.7 billion, outbidding several competitive offers. However, ’till this day Google has been struggling to turn its new business profitable.
Most recently, television executives have been challenging Google in regards to illegally posted TV shows. During the past month Google executives and CBS Corp. executives were working on a multiyear deal to let YouTube visitors watch episodes of CBS’ top shows online. Right now, all is pointing towards the end of any such deal. Additionally, NBC and Viacom (MTV Networks, Nickelodeon, and Comedy Central) have pressured Google and accused it of copyright infringement.

All these and more are signs that Google’s success in the web industry, specifically search, will be hard to replicate in the digital media sector. Google’s video service is not the only one facing a rough path in the road. Google’s news reader syndicator and its attempts to scan and make available millions of published books are facing challengers.

It will be extremely interesting to see how things pan out for Google as it continues to venture outside of its core search business.


Written by markusw

February 21, 2007 at 8:44 pm

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