Google has set the cat amongst the pigeons with free movies from its new video search web site. The move leaves a host of companies, including BT, which is already being forced to compete against free broadband, facing a ferocious, if not unexpected competition from the world’s most dynamic company.
When news broke last week that Apple and Hollywood were locking horns over the pricing model the computer company wants to apply to content downloaded for the video iPod, many thought it was just a matter of time before Hollywood rolled over, and followed the music industry in jumping to Apple’s tune. But then, to misquote Harold Wilson, a week is a long time in technology, and just a few days on it would appear that a host of major players are jostling for position to create their own brand of Internet TV. And while the future is unquestionably bright for the viewing public, the line up of competitors, which includes many of the world’s largest companies, shows just how tough this market is going to be. Betamax versus VHS will be nothing on this war; while riches will be created, some very large companies indeed could ultimately be brought to their knees.
BT, with its efforts to fight back at the price war raging in broadband, is to launch its video download service in the Autumn. But some say that the challenge posed by BSkyB, with its ownership of Easynet, will prove too much. Last week Channel 4 also announced its latest move in the video down load market - Vodafone and T-Mobile both made major announcements on their video download plans, while Microsoft is talking about launching a rival to the iPod and video iPod.
Now throw the British public’s favourite Auntie, the BBC (which is coming under increasing attacks from competitors saying the TV license gives it unfair advantages on the Internet) into the melting pot of Internet TV and you will see just how far reaching the current developments could ultimately prove to be.
The latest Google product has severe limitations. Free videos on offer include old Charlie Chaplin flicks, Alfred Hitchcock’s ‘39 Steps’ and a range of other old movies. Few people, other than students of the history of the film industry, would want to invest 90 minutes of their life into viewing some of the product on offer.
Even so, Google already has ad sponsors including HP, LowerMyBills.com, Netflix, Burger King and Shopzilla.com. The sponsors have a banner ad displayed above the video window. Apparently, an ad for the sponsor also appears at the end of each free film, although we confess to not finding ourselves suitably inspired to sit through the full length of any one movie to have this confirmed.
The current service has such limitations that we wonder whether the experiment is doomed to fail.
There is no point in testing an idea if the idea has been improperly presented.
But, somehow, we suspect that Google will plough on with this service, regardless. And what does seem to be an absolute certainty, is that it will get better - much better.
In fact, if you spend a while surfing the Google video site not just viewing the new free movies just launched, but checking out the other services that have been available for a few months now, you will experience a product that isn’t half bad.
If Video and other TV services present opportunities for the major players in converging industries throughout the world, the Google service illustrates how much danger lurks in these plans.
It seems to us, that the ultimate winners though are likely to be the producers of content, as companies armed with multi-billion dollar budgets attempt to woo them to their side.
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