Saturday, December 24, 2005 - Google Creates Spinoff

It is good to read that Google is "keeping the faith". "There will be no banner ads on the Google home page or Web search results pages. There will not be crazy, flashy, graphical doodads flying and popping up all over the Google site. Ever."

Googlehas gone the extra mile to show that AOL will not get preferential treatment. The AOL stake will be segregated into a separate holding company so that when the time comes, the shares can be "spun off". This arrangement helps TWX establish the value of AOL while keeping TWX and Google in an arms length transaction.

The key issue for me has been how TWX can make its tremendous video and magazine content available on the internet? I remain frustrated that one cannot quickly find an old movie or a "walled off article". Note that the ice jam is breaking-up. The linked article in this case is from PC World computer magazine.

The system I see developing is one of access via a search engine to lots of content but then a steady dose of encouragement to the consumer to subscribe to expanded services. The subscriptions offered should include something like a "literary pass" to multiple publications.

Consumers must pay for content in one way or another. Consumers want content without being force fed advertising. Consumers want to see advertising that helps them make decisions. Consumers themselves often do not know what they might buy. I just happened to run across a Christmas present yesterday that was exactly what I was looking for. I believe, Google would have helped me find this item if it knew more about me. As far as I know, Google is only slightly aware that I will soon have my first grand child. To this point, I am seeing no special advertising that relates to the coming birth.

Give Google time and it will help me and you find the stuff we want. Products we want to buy and content that we want to watch or read. The deal with AOL will open the doors to much more content. AOL and Google will learn much more about me when AIM and Google Talk start working together. The benefits will be to me, AOL and Google. Do the Google Gulp; the growth in revenues has only started.