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Running Google Means Never Having to Say You’re Sorry August 7, 2006

Posted by David Card in Media.

Or explain things. To anyone. Google has two great announcements — causing me to write two positive posts in the same day, which has to be some kind of non-snark record — and then they go and let CEO Eric Schmidt say this to the Times. More proof that at Google, “designated grownup in charge” has an entirely different meaning than it does at other former start-ups.

    Google will not say what portion of the advertising revenue from the program will be paid to the sites that host the videos. Mr. Schmidt says this is the same policy the company has with its text advertising network. “We don’t give people percentages,” he said. “Just all of a sudden the money shows up, and it’s a lot.”

Maybe that plays with Hiphopgame.com, purevolume.com and Lyrics.com, but it ain’t gonna play with the big guys. I’m sure Viacom knows what’s up.

Oddly, the Times says Viacom will be selling the ads itself. Even though the story also says Viacom will keep two thirds of the revenue. I know, I’m lost, too. Huh? Maybe Viacom will sell some of the inventory. Or set pricing. But you’re telling me this deal is about using Google’s hosting and distribution technology? Or DRM? I doubt it. Maybe initially, but not in the long run. If the deal doesn’t tap into both ends of the AdSense network (buyers and sellers), it doesn’t make much sense, for either side.

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