Google in YouTube talks with News Corp Mark SweneyThursday October 12, 2006MediaGuardian.co.uk
Google's top brass are to meet News Corporation executives this week to smooth over any concerns about the YouTube deal and expand the relationship MySpace.com has with the search engine giant.
The Google chief executive, Eric Schmidt, is leading the Google team heading to Los Angeles to meet Rupert Murdoch among other executives.
One possibility that is likely to be discussed is an expansion of the recent $900m advertising deal the two companies struck to include video advertising.
Google's $1.65bn deal with YouTube has significantly boosted Google's presence in the booming video sharing market - its own Google Video service is tiny by comparison. However, MySpace regards YouTube as a direct competitor.
YouTube gets a substantial share of its audience from MySpace users who link to the video site from their profile pages.
YouTube claims that fewer than 20% of video views on its site come from MySpace; however, the News Corp chief operating officer, Peter Chernin, told investors recently that 60-70% of YouTube traffic comes from MySpace.
MySpace has reportedly considered cutting links to YouTube.
While YouTube has been striking a slew of deals with major media partners - to try to stem the possibility of legal action over copyrighted material being used and downloaded illegally - News Corporation's Fox division has not yet signed any deal.
Warner Bros, Universal Music - which was threatening YouTube with legal action - Sony BMG and CBS have all signed agreements recently.
According to internet ratings body HitWise, YouTube has a 47% share of visitors to online video sites, although MySpace Videos, at 22%, is shown to be closing the gap.
However, research firm ComScore, which measured the number of videos streamed, said that, in the US in July, Google served 60m streams - or 1% or all video streams - with YouTube serving 649m and MySpace 1.4bn.
Responding to claims that Google overpaid for a legal copyright timebomb, Suranga Chandratillake, founder of US video search firm Blinkx, said: "Google's getting a bargain - it's almost certainly cheaper to buy YouTube at $1.65bn than it is to watch it get bought by a media company, and then have to do a deal similar to the one they were forced into with News Corp for MySpace.
"It's a great acquisition in terms of traffic, but also because they'll now have the social networking element of YouTube - something that's previously eluded Google.
"The copyright issue has been overblown - these things take a long time to fight and, with the combined traffic and momentum of GooTube, they could build a legitimate business while things were sorted out in the courts.
SUMMARY...
This article is basically talking about Google and how it is thinking of building a parnership with U Tube. With the huge success of U tube, Google is certain that they can create a huge partnership and have make a huge profit. They are in talks and are deciding to change the name to GooTube.
Google's top brass are to meet News Corporation executives this week to smooth over any concerns about the YouTube deal and expand the relationship MySpace.com has with the search engine giant.
The Google chief executive, Eric Schmidt, is leading the Google team heading to Los Angeles to meet Rupert Murdoch among other executives.
One possibility that is likely to be discussed is an expansion of the recent $900m advertising deal the two companies struck to include video advertising.
Google's $1.65bn deal with YouTube has significantly boosted Google's presence in the booming video sharing market - its own Google Video service is tiny by comparison. However, MySpace regards YouTube as a direct competitor.
YouTube gets a substantial share of its audience from MySpace users who link to the video site from their profile pages.
YouTube claims that fewer than 20% of video views on its site come from MySpace; however, the News Corp chief operating officer, Peter Chernin, told investors recently that 60-70% of YouTube traffic comes from MySpace.
MySpace has reportedly considered cutting links to YouTube.
While YouTube has been striking a slew of deals with major media partners - to try to stem the possibility of legal action over copyrighted material being used and downloaded illegally - News Corporation's Fox division has not yet signed any deal.
Warner Bros, Universal Music - which was threatening YouTube with legal action - Sony BMG and CBS have all signed agreements recently.
According to internet ratings body HitWise, YouTube has a 47% share of visitors to online video sites, although MySpace Videos, at 22%, is shown to be closing the gap.
However, research firm ComScore, which measured the number of videos streamed, said that, in the US in July, Google served 60m streams - or 1% or all video streams - with YouTube serving 649m and MySpace 1.4bn.
Responding to claims that Google overpaid for a legal copyright timebomb, Suranga Chandratillake, founder of US video search firm Blinkx, said: "Google's getting a bargain - it's almost certainly cheaper to buy YouTube at $1.65bn than it is to watch it get bought by a media company, and then have to do a deal similar to the one they were forced into with News Corp for MySpace.
"It's a great acquisition in terms of traffic, but also because they'll now have the social networking element of YouTube - something that's previously eluded Google.
"The copyright issue has been overblown - these things take a long time to fight and, with the combined traffic and momentum of GooTube, they could build a legitimate business while things were sorted out in the courts.
SUMMARY...
This article is basically talking about Google and how it is thinking of building a parnership with U Tube. With the huge success of U tube, Google is certain that they can create a huge partnership and have make a huge profit. They are in talks and are deciding to change the name to GooTube.
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