Google and Sky
On December 7th 2006, it was announced
that Google and Sky were to work together, with Sky offering
Google based services under their own brand. Specifically, the
companies will team up to offer video content, voice communications
and search advertising.
Sky will initially launch a video 'portal', with content being
generated by users - all powered to Google technology and tools.
Whether this proves to come from the acquisition of YouTube
or via Google video has yet to be made clear.
Sky Broadband customers will now see their email addresses (user@sky.com)
powered by the service that Google uses for its own domains,
and future opportunities include a Sky exploration of the VoIP
solutions that Google offers.
Finally, Google's AdSense advertising platform will appear on
Sky websites, and it seems there will be a revenue sharing scheme
in operation here. Whether this marks the emergence of Sky into
the PPC arena has yet to be seen.
The CEO's of the two organisations had this to say:
James Murdoch, Sky's Chief Executive, said:
'These agreements will bring Sky customers a valuable set of
services from the world's leading search company, including
cutting edge tools for video sharing and communications. Google
has pioneered many of the web's most loved and used
features, so I'm delighted that Sky Broadband customers will
be the very first online community to enjoy such unrivalled
range and quality as well as a commitment to further innovation.
In a short time, Sky has emerged as an effective challenger
by offering high-quality broadband that offers greater value
than traditional cable and telcos. Sky is on track to build
a large and successful broadband business and is increasingly
well positioned to participate in the rapid growth of online
search and advertising.'
Eric Schmidt, Chairman and CEO of Google, said:
'Google is committed to giving people the power to explore,
create and communicate. Today's alliance with Sky brings together
two of the most innovative media and technology companies for
the benefit of users. We will be delivering exciting new services
for Sky Broadband customers all over the UK. We're delighted
to team up with Sky in one of the world's most dynamic markets
and we look forward to working together in the years to come.'
Of real interest is how the two companies will work together
on this deal. Suffice to say, the attitude of each is very different,
and one can't help but feel that the diverse nature of each
platform makes true integration unlikely. The corporate attitude
of Sky is unlikely to sit well with that of Google's employees,
and more importantly, that of their users.
This announcement has roots in a comment made by Google in August
2006, when CEO Eric Schmidt waxed lyrical about the lack of
targeting in TV ads, and went on to day that Google was preparing
to deliver targeted, measurable television ads.
With a Sky partnership under their belt, this ambition is likely
to come to fruition. Although there are financial benefits and
opportunities for both, the mindshare winners in this case have
to be Google, particularly after the negative publicity Microsoft
received in their recent Sky Broadband venture.
With Google looking set to continue its dominance in online
search, and now making real effort to assert itself in other
markets, companies ignore the opportunities the search engine
offers at their peril. The majority of webusers already opt
for Google as their first choice for search, and now the public
at large is in for a taste of the 'Google way'.
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