Wednesday, October 11, 2006
Google’s Schindler on YouTube Acquisition
German Spiegel interviewed
Head of Google Northern Europe, Philipp Schindler, on Monday’s YouTube acquisition. Some key points:
- The price paid was fair because YouTube is so popular – Google Video isn’t as popular. Also, the next evolutionary step of the ’net will have an audio-visual basis.
- Google might be able to monetize this well using their high-volume automed ad systems. Google may also use “flow tracking” to target ads. This means whatever the user visits will be analyzed to come up with conclusions on which ads work best, independent of the current page the user’s on. Google doesn’t use this approach so far, Schindler says.
- There are different ways to make money with YouTube, like: sponsorship of specific content; turn some stuff into paid content; display a commercial before the actual video starts.
Schindler says protecting copyrighted content is a top priority, e.g. they ask users not to upload copyrighted content (yeah, right). However, Schindler also mentions the development of systems that automatically check if content is copyrighted. (It sounds like Google is working on this though the phrasing is unclear here.)
- It’s completely wrong to call this an “internet bubble” because the current ’net has a solid basis, and companies like eBay or Amazon are highly profitable. As opposed to the late-90’s new economy, this time around people are actually making good money.
- While talking about Germany, Schindler argues that some advertisers underestimate the potential of the ’net and don’t shift enough budget onto it.
- Google’s success stands and falls with the trust users put in them, because people come to Google voluntarily, and can leave anytime.
For more on YouTube copyright issues, see John Battelle’s interview with EFF’s Fred von Lohmann.
Also see San Francisco Chronicle’s interview with the YouTube founders from Tuesday.
[Hat tip to Brinke Guthrie.]
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