Building Brands Online: The Power of the Internet
Friday, March 16, 2007
The Viacom lawsuit against Google's YouTube will perhaps bring us closer to identifying the influencing role the Internet plays in our lives today. With Viacom's main concern being that its clips are generating an obscene amount of advertising revenue for Google, it seems that Viacom is naively wondering: What is this "internet"? Surely, when the case begins to get under way, an examination into the benefits of these MTV, Comedy Central, and Nickelodeon clips (reported in the New York Times to be seen an estimated 1.5 billion times) will reveal that this exposure is actually increasing these channels' viewership. Furthermore, in a recent Online Media Daily article, Gavin O'Malley quotes Eileen Naughton, Google's New York regional sales director, commenting on YouTube's revenue. Naughton explains that "the ad effect has not even begun to be felt. There is no well-built-out [business] model for YouTube right now." Perhaps the real issue being put to the test here is the power of persuasion over the Internet. The media is only recently getting the message. USA Today revamping its website to allow users to comment on articles is a clear indication that this thing called the "internet" is forcing all forms of business to do an about face. So is Viacom just scared of change and is this lawsuit a last attempt to shoo this big bad Internet away? Maybe. But maybe this is Viacom's attempt to get a good deal out of Google. Their way of haggling, if you will. Because, even the Viacom executives, who might not scout YouTube on a regular basis, have to understand that having their material absent from YouTube will only reduce their viewership as our generation has entertainment options that extend far beyond MTV, Comedy Central, and Nickelodeon. Labels: Google, Internet, media, Viacom, Youtube
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