Monday, March 21, 2011

Is Google a Media Company?

The difference between "indexing," "curating" and "content distribution" or "publishing" can be a subtle thing. Google always insists, rightly, that it is an indexer of content, not a content creator; an organizer of access to content rather than a media company. That's true for the overwhelming part of Google's business. And yet, 96 percent of Google's revenue comes from advertising. What other sorts of businesses make significant and core revenues from advertising? Media companies.

Google is launching a subscription service called One Pass to enable consumers to buy professionally produced news and information across the Web with a single click. Google also is working with the National Basketball Association and National Hockey League to provide sports content for YouTube.

In fact, some would argue YouTube could be what "cable networks" look like, someday.

To be sure, some amount of channel conflict always exists in business. Google wants to be seen as a partner for media companies, so it will keep insisting it is not a media company, but a way for people to discover content. But few large businesses do not have at least some areas of channel conflict. Google seems to be entering that area.

That doesn't mean Google will suddenly change. It still remains primarily a way of indexing and managing access to third party content. Mostly, but not exclusively.

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