TELECOM Digest OnLine - Sorted: Google Ups Ante in Online Video Gold Rush

Google Ups Ante in Online Video Gold Rush

Monty Solomon (monty@roscom.com)
Fri, 6 Jan 2006 22:52:09 -0500

By MAY WONG AP Technology Writer

LAS VEGAS (AP) -- Google Inc. is upping the ante in the online video
gold rush, allowing content owners to set their own prices in a bid to
create a more flexible alternative to Apple Computer Inc.'s pioneering
iTunes store.

Google's planned video expansion, announced Friday at the Consumer
Electronics Show, already has lined up commitments to sell thousands
of downloads, including recent television broadcasts of popular CBS
shows and professional basketball games, as well as vintage episodes
from series that went off the air decades ago. A launch date for the
expansion has not been released.

"It's the biggest marketplace of content that was previously offline
and is now brought online," said Jennifer Feikin, director of Google
Video.

Since Apple began selling video downloads for its iconic iPod in
October, a flurry of companies have joined forces to distribute TV
programming or other video content. The company says it currently
offers more than 3,000 music videos and 300 television shows for sale.

Google's flexible pricing model sets its service apart.

Apple dictates all the pricing in its iTunes store, charging $1.99 for
each video download and 99 cents for each song downloaded. The
restrictions already have caused considerable consternation in the
music recording industry and eventually could trigger a backlash on
the video side.

With Google's marketplace, content suppliers can name their own
price, from zero on up. The content owners who charge for video
downloads must share 30 percent of the revenue with Google.

The video providers have the option of offering content on a
download-to-own or download-to-rent basis.

- http://finance.lycos.com/home/news/story.asp?story=54541172

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