Tuesday, May 1, 2007

Google Vs. Myspace

Google is beating Myspace not by creating new technology but instead by using its business connections and legal department to pick the RIGHT fights (even though they appear to turn tail when put under a little pressure) with copyright holders. Their recent moves seem smart considering the near impossibility of writing software which effectively eliminates copyright infringement.

While Myspace is waisting time and money trying to appease the rabid media industries Google is trying to figure out ways to exploit them by essentially charging (through profit sharing deals) for copyright protection software which media giants forced them to create in the first place. Pandering to these bastards software demands will make no money for Google which makes maybe 1 percent of it revenue from licensing its vastly more popular and useful search technology.

Googles recent response to the media industry resulted in loosing an irrelevant deal with Viacom. Google's revenue floods in from a lot of little guys clicking on ads paid for by an infinite supply of nobodies. The deals with media companies are necessary in principle and practice for Myspace which was recently purchased by media monolith FOX. Myspace is destined to eventually fall from social networking greatness and when it does the volatility and lack of profitability in internet companies will hopefully become common knowledge. Until then Google appears to be making the correct plays by not pandering to the demands of an industry which needs to constantly sue consumers and businesses to protect profits.


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