Google chairman Eric Schmidt declares Internet video has displaced TV watching
By Jake Coyle, Entertainment Writer
NEW YORK (AP) --YouTube vs. TV? YouTube says the battle — if there ever was one — is over.
In a flashy presentation to advertisers Wednesday night, Google Executive Chairman Eric Schmidt declined to forecast that Internet video will displace television watching. Instead he declared: “That’s already happened.”
Schmidt said “the future is now” for YouTube, which recently passed the milestone of 1 billion unique visitors every month. But, he added with the Third World in mind, if you think that’s a large number, “wait until you get to 6 (billion) or 7 billion.”
Schmidt and YouTube, which billed the event as a “brandcast,” shifted away from the video platform’s relationship to TV. A year ago, YouTube seemed to have its sights set on reinventing television by funding the launch of more than 100 channels from well-known media brands and Hollywood personalities.
But that initiative went unmentioned at Wednesday’s presentation, held at a Lower East Side pier as part of a week of “NewFronts,” (digital media’s version of the TV tradition of promoting programming and selling ads). Though the model for the evening was TV, YouTube used it to distinguish itself as something entirely different.
“It’s not a replacement for something that we know,” said Schmidt. “It’s a new thing that we have to think about, to program, to curate and build new platforms.”
The presentation featured performances by Snoop Dogg and Macklemore, as well as YouTube personalities like Felicia Day. YouTube focused on its global reach, community engagement and enormous audience.
“I thought that YouTube was like TV, but it isn’t. I was wrong,” said Robert Kyncl, YouTube’s global head of content. “TV is one-way. YouTube talks back.”
Some comparisons were inevitable. One fact highly touted was that more 18- to 34-year-olds watch YouTube than any cable network.
“TV means reach,” said Kyncl. “YouTube means engagement.”
Though companies like Yahoo and AOL have used their NewFront presentations to announce new slates of original programming, YouTube made no programming announcements Wednesday night.
It did, though, announce a partnership with the Association of National Adverstisers’ Alliance for Family Entertainment to create more digital family content.
YouTube also celebrated DreamWorks Animation’s purchase Wednesday of the teen-focused YouTube network Awesomeness TV for $33 million. DreamWorks CEO Jeffery Katzenberg appeared with Awesomeness founder and CEO Brian Robbins, the former “Head of the Class” actor.
“This is a whole new form of content, content delivery and content consumption,” said Katzenberg. “It’s the medium of the future and the future has already arrived.”
Google Opens Its Defense In Antitrust Case Alleging Monopoly Over Online Ad Technology
Google opened its defense against allegations that it holds an illegal monopoly on online advertising technology Friday with witness testimony saying the industry is vastly more complex and competitive than portrayed by the federal government.
"The industry has been exceptionally fluid over the last 18 years," said Scott Sheffer, a vice president for global partnerships at Google, the company's first witness at its antitrust trial in federal court in Alexandria.
The Justice Department and a coalition of states contend that Google built and maintained an illegal monopoly over the technology that facilitates the buying and selling of online ads seen by consumers.
Google counters that the government's case improperly focuses on a narrow type of online ads — essentially the rectangular ones that appear on the top and on the right-hand side of a webpage. In its opening statement, Google's lawyers said the Supreme Court has warned judges against taking action when dealing with rapidly emerging technology like what Sheffer described because of the risk of error or unintended consequences.
Google says defining the market so narrowly ignores the competition it faces from social media companies, Amazon, streaming TV providers and others who offer advertisers the means to reach online consumers.
Justice Department lawyers called witnesses to testify for two weeks before resting their case Friday afternoon, detailing the ways that automated ad exchanges conduct auctions in a matter of milliseconds to determine which ads are placed in front of which consumers and how much they cost.
The department contends the auctions are finessed in subtle ways that benefit Google to the exclusion of would-be competitors and in ways that prevent... Read More