By Chris A. Heidelberg, III, Publisher & Executive Producer
I
am really fascinated by the recent moves by Microsoft. Microsoft
recently moved into uncharted territory as part of a long term strategy
that may provide headaches for rivals Google, Apple, Sony, Nintendo and
Yahoo. The recent advertising deal with Digg one of the most popular
social networking sites that rates articles and multi-media and works
as an archival site for researchers was a major blow to Google which
held the ad rights before Microsoft stepped into the picture.
Microsoft sealed the deal by investing more than $200 million in
Facebook and landing an exclusive advertising deal with them by
outbidding Google. These two deals were perfect because most online
newspapers and blogs have Digg ratings attached for readers and it
enables content providers to have their stories rated in the court of
public opinion with ads attached just like Google does now. Microsoft
is now setting the stage to create its own version of You Tube that
uses Digg.
Moreover, Microsoft investing in Facebook was crucial
because it puts Microsoft in a market with an influential group of
Internet users at elite universities and companies as well as ordinary
folks. Facebook works through individual and group networks which
Microsoft can post ads throughout the Facebook landscape. Facebook
allows one to use 3rd party applications to view and share video,
pictures and audio. Once again Microsoft can attack You Tube and
Google's advertising business which is part of Google's heart. Which
leads us to search. All of these things will allow Microsoft's search
business to pick up too. This also kept Apple from getting deals with
Facebook and Digg too in the future. While Apple is fighting content
providers Microsoft is setting up advertising deals and make alliances
for the future. While Google is fighting with Justice Department
officials over its acquisition of of DoubleClick, the online
advertiser, Microsoft is entering the game strong, and is preparing to
use Digg and Facebook to launch the development of the Zune, its Xbox
gaming line and eventually the Zune Phone and its Microsoft mobile
software. Remember, the record labels are Microsoft Zune's minority
partners. They get money from the sales of Zunes, something that Apple
rightfully refuses to do at the present, and it may be a great thing
for Microsoft unless young people revolt again this alliance with a music industry that is often regarded as the darkside because of their lawsuits against young people and their families.
