Google Video Abandons the Cash Register ... While 'NewCo' Raises Coin
The three biggest problems: Google never had a wide range of content for purchase. Google invented its own DRM system, so videos wouldn't play anywhere but Google's site. Google didn't let independent creators sell their content - only big media companies. And Google didn't promote the paid content; it was extremely tough to find.
And for some dumb reason, consumers will no longer be able to play purchased videos. You're telling me that Google, which spends about $1 billion on employee lunches every day, couldn't keep the necessary software up and running - to do right by the people who supported this service while it existed?
I still believe that people will pay for excellent content online. Google just made too many mistakes with this initiative.
- The NY Times reports that Providence Equity Partners is investing $100 million to buy 10 percent of the Fox/NBC video site that hasn't yet been named or launched yet. This values a company with no Web site, no viewers, and no revenue (but access to content from Fox and NBC) at $1 billion.
- And here's a bonus link, from yesterday's Times: a great piece on how comedians are using Web video to build an audience and generate interest among agents, networks, and studios.