So, in light of the news about Google's deal with The Family Guy's Seth MacFarlane, a question that we geeks in the consumer technology business have been pondering for a while has reared its head again: When does a technology company actually become a media company? And in this day and age, should we even be differentiating between the two?
For those who may have missed the headlines, Google has cut a deal with MacFarlane to create 50 2-minute "webisodes" titled Seth MacFarlane's Cavalcade of Comedy. The shorts will be distributed to websites via Google's AdSense for Content distribution network. Google's AdSense technology "scrapes" sites for demographic and content information, then serves up the appropriate advertising from its network. Now, Google will be serving content as well, ostensibly well-targeted to websites where Mr. MacFarlane's fans congregate.
In part two of the deal, advertising will be paired with the webisodes, and Mr. MacFarlane will receive a cut of the ad revenue. He's also been retained by some advertisers to actually create the ads that will travel with shows. This is a nice deal for him, any way you slice it.
For Google, the benefits of leveraging its technology to distribute content are obvious: it means more money in the already well-stuffed Google coffers. However, it also puts Google squarely in the media business. Eric Schmidt's statements that "Google is a technology company" are looking a little more disingenuous every day.
Does it matter whether Google considers itself technology or media? It definitely matters to the traditional media companies who have been partnering with Google. As media becomes more and more portable, as audience moves slowly, but surely, to broadband pipes, and as guys in warehouses start bending long established artistic formats (we're talking about you, EQAL), these companies must ask themselves every day: how do we innovate? How do we compete with an entity like Google, with deep pockets and a head start on vertical integration? Do we set about turning ourselves into technology companies? (Mr. Murdoch, to his credit, started working on this several years ago, when he created Fox Interactive Media.) And how does Google answer the obvious conflict of interest questions regarding distribution? Whose media gets priority? Google's media, or partner media? Will Google be able to convince its partners that there's a Chinese wall between their technology and media businesses? The Google algorithm is a carefully guarded secret, and history tells us that lack of transparency fosters suspicion, which augurs a bumpy road ahead.
As someone who's been slaving in these trenches for a while, I have a few ideas about what some of these companies can do to smooth the path... but that's another blog post. Or maybe a consulting assignment. In the meantime, I'll look for Seth on the Internets and cross my fingers that in the midst of all the brouhaha, he's actually created something that makes me laugh. After all, that's the point, isn't it?


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