Now that the tech industry and Wall Street have had time to absorb Google's US$1.65 billion acquisition of online video sharing giant YouTube, the question on everyone's mind is: What's next? Prognosticating on Google's overall direction or specific strategy about a piece of technology has become the tech industry's favorite parlor game.
By now the tech industry -- not to mention Wall Street -- has had time to absorb Google's (Nasdaq: GOOG) US$1.65 billion acquisition of online video sharing giant YouTube, a deal financed with the company's robust stock value. The deal is official, despite some doom and gloom reminders of similar over-sized deals from the last tech boom -- deals that are of course long dead. Now the question is: What's next for Google, at least as far as this particular piece of Web 2.0 is concerned?
Prognosticating on Google's overall direction or specific strategy about a piece of technology has
become the tech industry's favorite parlor game, with the company providing as little guidance as possible outside of its Securities and Exchange Commission filing statements. Nevertheless, it is clear that Google is going to leverage videos not only to continue to build out its formidable index of content, but also to extend its advertising platform beyond the Internet.
Prevalent and Accessible
First, however, Google will have to digest its YouTube acquisition, one of its largest thus far. Bill Holsinger-Robinson, COO of Spout.com, an online community for film devotees, told TechNewsWorld the deal does make synergistic sense.
"YouTube serves up millions of online videos, [while] Google of course is expert in indexing," Holsinger-Robinson said. Consumers, he predicted, can expect to receive new video-related content and services as a result -- not just from whatever Google will generate from YouTube, but from other companies as well. "Video will be that much more prevalent and that much more accessible," he said.
Long-Term Plans
Indeed, that is the very point of the acquisition, Matt Booth, an analyst with the Kelsey Group, told
TechNewsWorld. "There is no doubt video is going to drive a ton of revenue on the Internet," he said.
Immediate and mid-term questions that advertisers, content providers and Web sites will have figure to include what kind of content will best deliver ROI to advertisers. Conversely, Booth said, the industry is going to have to find a way to vet content for advertisers.
Otherwise, "I can see an everyday consumer goods product finding itself positioned next to a video of questionable content," Booth noted.
Once such operational issues are settled, though, Google will be using its video arsenal to build out an
advertising platform that can extend across all mediums, from iTunes to broadcast television.
"The technology and processes to insert an ad in front of a video and track returns for advertisers is the
same, whether that video is on a computer screen or a TV," Booth explained. "Once Google has a platform developed, that is where it will be headed."
Lycos Launches 'Watch and Chat' Cinema November 13, 2006
Lycos on Monday unveiled a "watch and chat" video experience. Users can host their own Screening Rooms with Lycos Cinema and invite others to watch. The host controls the video experience. He or she can pause, rewind and fast-forward video streams, and chat with other Screening Room viewers.
Related Stories
Google Apologizes for Virus Distribution November 10, 2006
Google acknowledged that it inadvertently e-mailed postings to some 50,000 users that contained the Kama Sutra virus. The search giant revealed the mix-up in a posting to its Video Blog site. "We're sorry for any inconvenience, and we're taking steps to ensure that this doesn't happen again," the message said.
Is Google Bracing for Legal Onslaught Against YouTube? November 10, 2006
Google CEO Eric Schmidt has denied a rumor that his company put aside half a billion dollars to settle expected copyright claims by media companies as part of a deal to acquire YouTube. Speaking at the annual Web 2.0 Summit, Schmidt said a recent blog post about the supposed legal deal was untrue.
Google to Test Newspaper Ad Program November 06, 2006
Google is launching an experiment that could expand the Internet giant's sphere of influence to the print advertising world. Some 100 of its existing advertisers have been invited to participate in a test of a program that will place ads in 50 major U.S. metropolitan newspapers.
Related News Alerts
More by Erika Morphy
Ballmer Gives Shareholders - and Dell - Cause for Optimism November 20, 2009
Microsoft CEO Steve Ballmer was all smiles at the company's shareholders meeting, as he touted the early success of Windows 7. Ballmer's cheer may have been contagious; after posting a massive earnings decline for the third quarter, Dell needed some good news to latch onto, and the prospect of broad enterprise adoption of Windows 7 could spur PC sales.
AA.com Sucks the Fun Out of Trip-Planning November 20, 2009
Using AA.com to book a flight was a painful experience. Densely packed, disorganized information was displayed in an unattractive format. On the plus side, it did seem as though the deals American Airlines advertised were real and not mere bait-and-switch lures. For anyone who wants a travel-planning Web site to inject a little pleasure into the experience, though, I say look elsewhere.
Salesforce.com Pumps Up Volume of Workplace Chatter November 19, 2009
Salesforce.com has developed a collaboration platform that puts social networking to work. Salesforce Chatter facilitates employee collaboration on projects through Facebook-like profiles, status updates, feeds and groups. The question remains whether employees will be as open to social networking in the workplace as they are in their personal lives.
Headline Feeds
financed with the company's robust stock value. The deal is official, despite some doom and gloom reminders of similar over-sized deals from the last tech boom -- deals that are of course long dead. Now the question is: What's next for Google, at least as far as this particular piece of Web 2.0 is concerned?
Talkback: 
