Google-centered online world
Google makes a deal valuing 900 million with MySpace- exclusivity for search/publicity on MySpace and other Fox domains for a period of 4 years.
Google deals with MTV concerning video-content distribution. Some would say that Microsoft got the start with Urge MTV deal, but they forget that the most of audio content belongs to the recording industry (which - apparently - don’t work on the basis of an unique distributor). And if Google will see it works, it will immediately get into iTunes, for sure!
Therefore, Google has now the space as well as the product for selling them to the young generation. With a 4 years deal they will feel very comfortable in inventing specific algorithms for MySpace, algorithms that will be able to exploit very well the characteristics of the service (networking, profile section, collaborative filtering etc). Especially because they have enough experience with Orkut as to know from where they should start.
From Microsoft’s ”where do you want to go today?”, it will get to Google’s “today you want to buy a vintage album with the B-sides of Dr. Dre, and a pair of Converse shoes, red with black sole. We know it because we can read your behavior and demographic patterns”.
And if we also add the deal with Associated Press, I think that the business model will be gradually changed. Or they will rather complete it. Besides contextual advertising, I think that they’ll add up the distribution of intangible goods (music, video, articles, books) in the same contextual style. And with an action base distributed to all the major partner sites (AOL, MySpace) and to those from AdSense network. Especially because they already have a micropayments engine by Google Checkout.