Google Uncertain with Future of Online Video

Google's vice president for content partnerships, David Eun, recently revealed in an interview that Google is just as perplexed as the rest of the world with respect to the future of online video.

Many were shocked when Google paid over one and three quarters of a billion dollars to acquire the emmensly popular YouTube web portal. Notably so. And yet, one might assume that in order for Google to make such a large purchase, the company must have had some prediction as to where things may lead.

However, the opposite may be true. Eun admits that analysts have been unable to determine both the size and breadth of the online video marketplace. (Source: betanews.com)

In an interview with The Hollywood Reporter digital media editor Andrew Wallenstein, Eun was asked to comment on reports that Google is becoming a "frenemy" -- a company that is both a competitor and partner simultaneously. Eun's response not only answered Wallenstein's question, it also revealed the cloud of ambiguity that hangs over the YouTube purchase. (Source: hollywoodreporter.com)

"I think it's because frankly we don't know exactly how the online video space is going to go. It's still very, very early and the entire market is, depending on which analyst you use, is a $200 million market, which is still very, very small. So because we don't have a lot of data, there's a lot of questions out there," Eun said. He added, "at Google, we don't have a clear idea of how the market is going to shape up, but we're really certain about the things we want to do. So if it seems like we know what's going to happen and maybe you don't, my theory is that there's a perceived imbalance you might feel, when in fact we have lots of questions, too." (Source: hollywoodreporter.com)

Although Eun's candidness reveals that Google may not have an exact blueprint of the future market, his comments prove that the YouTube purchase was not a haphazard decision. He noted the deficiencies in advertising for video content, and says that Google wants to channel video viewing behaviors into a process that can be monetized. He also notes the importance of advertising content being not only relevant but also "fresh." (Source: betanews.com)

At the end of the day, a good plan in an uncertain market may be all that Google needs.