google buys youtube for 1.6bn

so, just over a year ago murdoch bought myspace for 580m. a couple of months ago google paid myspace 900m for the rights to advertise on the network.

today, google has paid 1.6bn (numbers are in dollars) for youtube, a service playing young upstart to the likes of myspace (the company only started in 2005 and is already one of the most-viewed sites on the internet). i guess that saves google having to work out some advertising deal. all in the same month the much-loved tech house moved into madison ave.

so, are all these actions related? possibly, if you were to lay down the game plan for a company that started with technology, discovered a potent internet advertising model  and then decided it wanted to spread that model to every available channel. from the humble beginnings with search, there’s been forays into the world of email (gmail), blogging (blogger), radio (dMarc) and mobile advertising (google local).

but the youtube purchase should send a warning bell to the television networks (and possibly film as well?) – the days of internet distribution of multimedia content to the mass market may not be that far off. what does that mean? possibly a sharp drop in primetime viewing figures. the kind of myrrh the music and newspaper industry are finding themselves in.

what will the new networks look like? essentially although there will still be the core channels that usurp much of the audience, there’s room for just about every niche you can think of. add global coverage to that and all of a sudden you have a whole new broadcast market looking at you. step up the b2b world. step up the minority interest companies. you will soon have a brave new world.

or is it just brin and page throwing a tissy fit with their wallets after losing out to murdoch with myspace?

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