August
28, 2006
Copyright Mediaware Infotech Pvt. Ltd. |
With
the Internet, the trend has always been to go where no man has been. Today, six
years after the dotcom boom/bust this
is even more true.
Online
Alliances
During
the past 6 months, Internet companies have been frantically announcing alliances,
mergers & tie-ups. Two recent will announcements serve to undersore this trend
admirably:
1. Leading video sharing site YouTube plans to post
music videos with the active collaboration of record labels.
2. The
recent partnership between Google & eBay where Google will provide Web
Search advertising to eBay, while eBay will take care of "click-to-call" ads -
linking online shoppers to customer service via Skype (bought out by EBay last
year).
As in most matters pertaining to the Net, this trend is reflected
deeply in the announcements made by Google. Mind you, with its relentless diversifications
to redefine conventional businesses, Google could well be considered as a "universal
rival" ! Despite this, the Internet giant has been striking deals with other companies
at "breakneck" pace.
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Deals Galore !
In 2006 - H1 (the past 6 months), a number
of significant deals have been announced pertaining to online services. Here are
a few :
Less than a month ago, Google & Fox Interactive
Media have tied up to use Google's Web Search advertising to direct traffic to
its Internet sites like MySpace.com (which was bought out this year by Fox owner
News Corp).
Before that, Google had tied up with PC maker Dell
Computers to ensure prominent positioning for Google Web Search on its PCs. (Most
probably to compensate Microsoft's alleged attempts to drive users to MSN Web
Search in the next version of the Windows operating system !)
Earlier,
Google acquired 5 % stake in AOL as part of an alliance to provide
AOL Web Search advertising. And also tied up with XM Satellite Radio
to link XM radio audiences to Google Web Search advertisers. And announced plans
to distribute MTV video clips over the Google network.
A
few months back, YouTube & NBC TV had announced "NBC Channel"
on YouTube's online video site which would be used to promote upcoming TV shows.
Arguably
the world's largest Internet media co., Yahoo's
tie-up with eBay gives it exclusive rights to serve online banners &
ads on eBay - with Yahoo agreeing to cross-promote eBay's online payment system
PayPal.
Awhile ago, Microsoft & Amazon.com had signed
a deal to replace Google Search Engine in Amazon's A9 Serach with Microsoft's
new Web search advertising technology.
Leading U.S. broadcaster ABC
TV & iTunes.com had sometime back, got into an agreement to sell ABC's
TV programs through Apple's iTunes Web site.
And of course, Microsoft
& Yahoo have already collaborated to make their individual Messenger
softwares compatible with each other ! | |
Uncharted
Waters
Of
all the online deals announced recently, there is one which is based on a business
model which treads on "uncharted waters". We refer to an announcement
by top record label Universal Music to provide its songs to free download
site SpiralFrog.com.
The music download business has so far been based
on a "pay per song download" model, with iTunes being the clear leader
(commanding an estimated 75% market share). Of course there are many aspirants
like Microsoft's Zune, MTV's Urge & many others. But for the present, iTunes
seems to be bravely holding on to its own.
There have been (and continue
to be) many attempts to provide free music downloads - the most famous being Napster.com.
But Napster & many others of its ilk have been forced to shut shop due to copyright
violation problems. The others are languishing as free services, with no revenue
model in sight.
Redefining
Online Music Distribution
Going
completely away from Apple Computer’s highly successful iTunes' online music store
model, Universal Music is making a bold attempt to redefine the digital music
distribution business.
The world's largest music label
Universal Music has announced that it plans to provide its songs to start-up
site SpiralFrog.com. SpiralFrog plans to allow consumers to download songs
for free, relying on advertising & promotion for revenue.
With such a heavyweight
backing it, will SpiralFrog be able to do what Napster.com could not? Will the
ad revenue generated be significant? A revenue model based on advertising does
seem plausible - targetted as it is, to an audience which represents today's youth
(& tomorrow's wage earner).
If successful, other big labels are bound to
follow Universal. And who knows? Making downloadable music available for free
may even kill piracy! |
Mediaware Infotech Pvt. Ltd.
The New Mahalaxmi Silk Mills Premises,
Mathuradas Mills Estate, Opp Kamala City, Senapati Bapat Marg,
Lower Parel
(West), Mumbai 400 013.
Tel: 6660 2634 Fax: 24923765 Email : response@mediawareonline.com
Mediaware Gulf
P.O.Box No. 182620, Dubai Media City, U.A.E.
Tel: +9714 3681655 Fax: +9714 3688058 Email : m-e@mediawareonline.com
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