YouTube is swiftly adopting Google's informal corporate motto on not doing evil. Google has a lot riding on it$1.65 billion in stock, to be exact. That's how much the Web search giant is forking over to buy You Tube, the popular online video and social networking service that in just a year and a half has become one of the most visited sites on the Web.
Google (GOOG) executives said the deal would help transform their company into a global media powerhouse and provide new audiences for the targeted advertising that's the lifeblood of Google earnings. Executives plan to keep the company as a standalone service, while continuing to nurture Google's existing video service. "Video is a great medium for advertising and from that point of view we are really excited about YouTube," Google co-founder and chief technology officer Sergey Brin said on a conference call announcing the Oct. 9 deal. "It is hard for me to imagine a better fit for a company."
But if YouTube is to remain a good fit, it will have to keep its new parent free of costly copyright infringement lawsuits, filed by media companies and other content providers concerned their material is being used illegally on the site. YouTube has a history of tangling with music labels and television studios over users' uploading copyrighted music and video clips to its service.
NEW RULES. YouTube's policy is to remove copyrighted clips once alerted to their existence. Content providers say the company needs to be even more proactive. YouTube was sued on July 14 by Robert Tur, an independent photographer, for distributing his work without permission (see BusinessWeek, 8/7/06, "Whose Video Is It Anyway?"). Universal Music Group weighed whether to sue YouTube over copyright infringement as well (see BusinessWeek.com, 9/18/06, "Sour Musical Notes on YouTube, MySpace").
Todd Dagres, general partner at Boston's Spark Capital, says that Google's large market cap of $130 billion makes it much more vulnerable to lawsuits than a private company such as YouTube. "Once Google starts to apply its monetization machine, there is going to be more money at stake and people are going to go after it," says Dagres. "You cannot monetize other people's content without their approval."
That's just what YouTube is trying to get. Hours before announcing the sale, YouTube executives said they had struck content deals with CBS (CBS), Universal Music Group, and Sony BMG, the partnership between Sony (SNE) and Bertelsmann.
Since Hulu currently possess but a small fraction of the market share, there’s been an evident amount of action taken in order to compete with their more successful counterparts, mostly out of necessity (Moskowitz, 2015). One of Hulu’s more impressive moves as of late includes the acquiring of exclusive streaming rights to Seinfeld (Silbert, 2015). Similarly, Hulu paid $192 million this year to maintain its exclusive deal to stream South Park through 2019; this has been the company’s most expensive deal to date (Miller, 2015). These expensive acquisitions emphasize the fact that quality content is key to drawing in new customers and maintaining relevance for current subscribers. The slightly more thriving companies within this oligopoly have content libraries which include a mixture of innovative original content and popular classics. Making a syndication deal like this is a step in the right direction for Hulu on the way to becoming a more dynamic contender in their
Google is multinational public corporation of United States of America that invested in cloud computing, Internet search and several advertising technologies. Its main business is to develop and host Internet based products and services. The company makes profit through “AdWords” which is internet based advertising program. The CEO of the company is Eric Schmidt. The company was founded by Sergey Brin and Larry Page who are known as the “Google Guys”. In the beginning the company was registered as a private entity. In 2004 the company’s status changed from private to public concern. After the status of company changed Eric Schmidt, Sergey Brin and Larry Page signed an agreement to work together at Google for twenty five year. The agreement will expire in 2029. The aim of the company was to make information universally available in an organized manner. Since then they have been doing this job excellently. The company’s headquarter is located at Mountain View, California.
Additionally, there are other online companies that compete against Google- including Facebook and Apple- thus placing it in a competitive market as opposed to a monopoly. In the Internet market, the barriers of entry are low, so it wouldn’t be very difficult for one to create their own search engine and essentially “compete” against Google. At once, Google was in its state of infancy, with competitors such as Microsoft and Yahoo, to which they eventually surpassed in terms of users. Google remains victor against its competitors by constantly changing and making updates to its products, thus attracting more consumers and making it unnecessary for the government to intervene. Google serves as the model for a “successful company” since it was born into a market in which there were two big competitors and it eventually surpassed them and bought out various Internet sites. If Google’s success was punished, other companies would be discouraged from growing and competing against other firms in this market since it will not be able to reach the success of Google without various anti-trust policy
Google uses tools like Ad-words in which advertisers and business owners bid for good keywords. Any advertiser that wants to be able to have their ad displayed on Google search must continuously monitor the price of the keyword and maintain a bid high enough to keep their ad active. As competition for the best keywords increases the price goes up. The customers are what drive the increase in ad revenues for Google. Strength about Google’s monetization plan is the fact that it’s one of the most brilliant plans in the world trying to be copied by companies across the globe. Its business plan has led Google to the top already. The only weakness I see is the fact that its business relies so hard on advertising. 66% to be exact and if a new search engine were to come around and captures the public eye more (highly doubt it anytime soon) then Google will see huge losses in their strongest capital generating sector.
If Google could try to stay away from law cases it could reduce expenses on having to pay for the cases as well as reduce the negative image it gives the company, professional as well as ethics. Another thing Google should look at is putting more effort into their other products and not just relying on the marketing side of the business product. With that being said I think the company should make the services they offer a little more professional as well as private (my previous example in the essay) and commit more to CSR (Corporate Social Responsibility) or CSI (Corporate Social Investment).
Google success can be seen in its staggering revenue figures. Google announced $55 billion in total revenue for 2013, which is 189th on Forbes 500 list, the majority coming from advertising (Google Investor, 2014). On top of this their profits exceeded $15 billion. Despite a narrow revenue stream, Google’s broad product range is also a measure of their success. Part of the strategic developed of the company has been through diversification. This has been achieved through commitment to a policy of bold and aggressive acquisitions, currently they hold over 100 products in their portfolio. This gives them broad awareness, vast economies of scale and sustainability across their product-lifecycle and Boston matrix (Hooley et al 2008).
Google conducts business in over 50 countries with exclusive domain names for each country. The fastest growing segment of the advertising market is internet advertising but still only represents 8% of total U.S. advertising dollars. This advocates substantial opportunity for further development. To take advantage of these possible endeavors, Google has reinvested the profits from its ...
A majority of Google Inc. revenue comes from its advertising services. As a search engine provider (i.e. chrome) it knew that it had access to billions of customers worldwide which businesses want to reach. So it asked the question, “What if we could provide products that allow for better attribution and measurement across screens so that we show great ads for the right people?” (citation). From there came this idea of providing advertisement services to businesses. Its ad services are grouped into Performance advertising and Brand advertising.
Before the persuasion of the year 2007 begins, the background of Hulu is greatly needed. Hulu was announced in 2007 along with other infamous businesses such as Myspace, AOL, and even Hotmail. The purpose of Hulu was to allow users to enjoy their favorite TV shows or movies without having to leave the couch. Although not making the initial mark in 2007, it is now the foundation, along with Netflix, for other venues such as Crackle, Vudu, Amazon Prime, and so many more. Unlike Netflix, In March of 2007 NBC universal shared their joint project with News Corruption. Around this same time the famous website YouTube was on the rise and didn’t like the sound of their up and coming rivalry , Hulu. Many people who heard about the jump start of
...as not only been reliable when it arises to offering a product of the highest and excellence, nonetheless is also continually developing, adjusting, but more meaningfully revolutionizing the industry. Also, what creates Google’s invention so matchless in assessment to its challengers is the attention that it offers to consumer requirements in order to offer a consistent and difficultly substituted the product rather than concentrating on exploiting its profit with each given chance which may cooperation the quality of its search consequence its product. Having examined the company’s internal and external environment it is obvious that Google earnings care and attentions even to the smallest detail to guarantee that it will be the leading company between many other online search engines and has been able to create loyal customers that are continually growing.
Along with the development of a file format (MP3) to store digital audio recordings, came one of the new millennium’s most continuous debates – peer-to-peer piracy – file sharing. Internet companies such as Napster and Grokster became involved in notable legal cases in regards to copyright laws in cyberspace. These two cases are similar in nature, yet decidedly different. In order to understand the differences and similarities, one should have an understanding of each case as well as the court’s ruling.
Google continues to grow and innovate. Google focuses on the user and all else will follow. Since the beginning, they have focused on providing the best user experience possible, and take great care to ensure that they will ultimately serve their customers(Google.com n.d.). In relation to market development and product development the core values “Its best to do one thing really, really well (Google.com n.d.),” fits in with these strategies. “You don’t need to be at your desk to need an answer (Google.com n.d.),” describes Goggle’s innovation to mobile platforms. “The need for information crosses all borders (Google.com n.d.).” Google company has grown and has offices in more then 60 countries, maintaining more then 180 internet domains, and serve more then half of their results to people outside of the United States, and this relates to concentrated growth strategy. “Great just isn’t good enough(Google.com n.d.).” Google continues to strive to reach for better ways of doing things, through innovation and integration, continue to improve things in unexpected ways (Google.com n.d.).
Google Inc. is a company that started in 2002 and has gradually grown to become an international technology company. Google’s business is mainly focused around vital areas, like advertising, search, operating platforms and systems and platforms, hardware products and enterprise. The company produces its revenue mainly by distributing online advertising. Google also produces revenues from Motorola through selling products. The company offers its services and products in over 100 languages and in over 50 regions, territories and countries. The company assimilates various features in its search service and gives dedicated search services to aid users modify their search. Google also gives product-listing advertisements, which comprise of product information, like price, merchant information and product image without needing ad text or extra keywords.
Industry (Industry concerns for Google are competitive threats from Yahoo and Microsoft and new unknown competitors that may be international. Agreements with advertisers could potentially become competitive as well, as a result, reducing operating margin)
Interests: The image of Google in the media and among investors will be seriously damaged if it act antithetically to its philosophy of “Don’t’ be evil” It might affect negatively to the future prosperity of the company.