BigBrainBoy

John Battelle: Google Video Store

John Battelle’s Searchblog is an excellent resource for anyone who wants to know more about Google:

The ability to sell video is great, but not news. We’ve known that was coming. What is really interesting is the pricing leverage: Google is splitting revenues 70/30 - that’s 70 to the content producer. Also very important is that the producers of content are the ones who set the price - again, totally different from traditional models. Thirdly, Google is doing its own DRM. That’s very interesting, and probably best left as the subject of another post. Producers can decide to not use DRM, as Charlie Rose did, Feiken told me.

This is a major step toward entirely new models of content distribution, and if I were Comcast, DirecTV, the telcos, or frankly anyone in the traditional video business, I’d be a bit concerned. It gives content producers far more power to connect directly to audiences, and the leverage will only increase - in five years, it won’t be 70/30, it’ll more likely by 80/20.

John goes on to predict that the studios will be among the first to sign up for Google’s new service but we’re not so convinced. Firstly, the studios have already spent gobs of money building and promoting their own online movie distribution services. Their future is certainly in jeopardy but will the studios have the stomach to kill their own children right away?

Secondly, iTunes gives studios much more control over display, ranking and other promotions. If you have learned anything about the big content producers like the studios and networks from this site it is that they love micromanaging control over their product. The wild west of Google Video may be fine for indie producers but definitely not the studio’s style.

Introducing Digital Rights Management (DRM) definitely puts Google into direct competition with Apple and Microsoft. This should shape up to be an interesting race. See John’s post for links to other Google Video competitors.

Posted by Ori on 01/10 at 04:44 AM