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New Approach to Old Media April 10, 2007

Posted by Joanne KY Teoh in Convergence.
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Who has more power over Web content – the creator or distributor? This question dogs Google as it navigates the old media landscape. Experts in a Knowledge@Wharton article say what scares traditional content owners is Google’s goal to be the center of the universe for all information.

Content owners see Google as a threat than ally. They worry it will get the lion’s share of any partnership. Copyright skirmishes with the book publishing industry haven’t helped Google’s cause.

While Google has resources to create deals with content companies, it still must contend with a number of confounding crosscurrents, including content owners’ concerns over intellectual property and a clash of advertising models. How does it compensate various players in the traditional media food chain?

Traditional media companies “have models that have evolved to be inefficient.” For example, a single snippet of video content — such as a commercial — most likely has multiple parties looking for compensation.

An actor in a television commercial may get paid every time it runs, and the ad agency could also be remunerated based on the number of times the commercial is aired. What happens if that same commercial is uploaded and played on YouTube?

Patricia Williams, Professor of Marketing, Wharton

The irony is that traditional media companies need Google and its platform to reach a new audience. Google needs strong content to drive video traffic and create a business model for YouTube. Both need each other. There are issues to be resolved before both ultimately join forces.

Read the full artlcle at here.

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