On Monday morning Murdoch claimed on Sky that he would take all of his content off Google. That afternoon, Google announced the purchase of AdMob. Fascinating to phrase the question that way – one man against a billion-dollar company. The phrasing of the question alone highlighs Murdoch’s power. And it’s fascinating that Microsoft is not mentioned. Gordon Brown in GQ this month says that Murdoch – or The Sun – is trying to be a political party. But I chose to frame the question around three points: 1. Who has the closest relationship to the consumer? Always the place to be.2. Who makes the most money? That can be indicative of strength – but it can also be a short-term position.3. Who can you avoid? Ubiquity and monopolistic power are at play here. So Murdoch’s strength today is that he is closer to the consumer. And he is rightly trying to win in the paid-content battle. Today, everything in business has a fundamental “network orientation”, which goes far beyond Facebook. The winners are those companies who align the economics of their ecosystem. That can be a startup hellbent on destruction or an established player with vision. Remember: Google’s innovation was its business model, not its search technology. Alta Vista was the better search engine, and Yahoo the more dominant one. But it was Google who stole the business model. That twist of fate gave it a clever ruse to gain control, to establish massive network effects by organising the economics of the world’s information. That’s why it is winning. But when the consumer wakes up to understand the value of their personal information [that they give away through the process of browsing and searching the web], then they too – like every artist or any creator of content – will want a cut of the value of the transaction or they will shift to a new paradigm which gives them their fair share of the value, and in doing so, protects the privacy of that information. There will be many failed attempts but eventually there will a breakthrough, some guy who by design, stumbling or theft, will see that next paradigm. We laugh to think of Google fearing cannibalisation of its status quo but, like everything under the sun, it has an Achilles’ Heel. If it doesn’t move fast, someone else will. Short-term, you can’t avoid Google. Long-term, bet on the entrepreneur and the on-going process of innovation. Julie Meyer is CEO of Ariadne Capital, founder of Entrepreneur Country and a BBC online dragon. Related articles:"Remember who you are, Lord Sugar!" Julie Meyer on how to commercialise great inventionsJulie Meyer: "Content is the new software"
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.