Google announced plans to buy 5% of AOL for $1 Billion. The deal would help shift AOL's business from Internet subscriptions to more advertising and content revenue. AOL already used Google as their search engine but the new deal will block MSN from creeping in. The Time Warner's portion of the business will not change too much, but Google's working up a different TV deal with CBS.
Google and CBS have been in talks that would allow Google to resell local ad space to it's advertisers. As you know, Google changed the world of online advertising with their little targeted text ads. Google is offering revenue guarantees for content licensing and for the resale of traditional media. Both parties have much to gain from such a deal. When Google goes into something, they tend to change the thinking around it. That is why they are one of my favorite companies. Another arena they are looking into is books.
Google has entered an agreement with the University of Arkansas to digitize many of it's books and make parts of their content searchable online. This is part of the Google Book Partners Program. The entire book will not be digitized, only certain parts. Google hopes that being able to access a good portion of the books will lead to more book sales. Cory Doctorow and Seth Godin have been giving away copies of their books online for years now. The world is becoming more interesting everyday. Google entering any market is the beginning of change. Google allows participants to promote their books online for free, while protecting their content, and driving sales. Who would have ever thought that a company whose name sounds like baby talk could ever create so much change. Amazon beware, google books is here and they are making it easier for publishers and readers alike.
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