Google TV, free content and the future of long-tail content delivery
Google is preparing to launch Google TV together with Sony, Logitech and Intel. Details about how the service will work and what will be in the Set-Top Box or Sony TVs are not very clear yet. However Google has been one of the few companies that is really driving the long-tail content and advertisement market. When Google TV is discussed then people are always talking about which content will be offered for what price…
What if content was free?
Or at least there would be a cheap all-you-can-eat price? Impossible? Why? Youtube is able to show personalized advertisement per viewer based on what you watched previously, how old you are, where you are, etc. So if a movie can be paid for by broadcast advertisement then it can probably also be paid for by personalized advertisement. Additionally knowing your content preferences allows for other up-sells, e.g. merchandising.
How much is Google going to pay for movies?
Perhaps nothing. Why can’t they do revenue sharing with content providers? This would allow for a long-tail content delivery market that is currently unheard of. Content providers would get a share of the advertisement revenue. Block busters would generate a lot of money whereas home bloopers or specialized documentaries would not. According to the Long-Tail theories however 98% of all content would be viewed at least ones a month. So Google might be able to make more money with the old-time classics, funniest amateur clips, etc. then with the Hollywood blockbusters.
The big losers?
Some startups that wanted to enter this space will probably die. Content generators would make the same money. Some studios might have to do with less. However telecom operators would have a large load on their network without any guarantees they get any extra cent…