Wednesday, December 21, 2005


The AOL-Goog deal is a win-win deal. It forces a few compromises on both parties and takes Google in the direction of the "old web" but it also opens up the massive film library and massive instant messaging service controlled by AOL.

AOL has set up its film library to force advertising down the consumer?s throats. It is a real shame that the TWX folks are not ready to experiment a little more with pay per view and relevant, non-obtrusive advertising. We can only hope that Google will help AOL adjust to the "new market".

To access the AOL IM service, Google Talk users will need to open a free AOL IM account. I can live with that. After Google Talk is open to a few more services, the push will be on for all IM services to communicate with one another. It makes no long term sense for Yahoo and MSFT consumers to only communicate with one another and for AOL and Google Talk users to communicate only with one another. The also-rans will be quick to make deals with these two major choices.

The good news for AOL and Goog will be the increase in ad revenues. The potential is huge relative to current levels. Again, AOL needs to let Google show the way. Those of us who use the services should boycott services pushed by AOL that require ad viewing. Ultimately, in an open and competitive market, the consumer has a lot of power; use it!