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What's Really Behind the Rupe-a-Dope With Google and Microsoft? Here Are Five Possibilities!

Kara Swisher — Wed, 25 Nov 2009 00:34:29 +0000

Please see this disclosure related to me and Google.

There certainly is a lot of noisy swirl of late around the escalating fight between Google and some traditional media companies over content online.

The loudest voice in this fight has clearly been News Corp. (NWS) kingpin Rupert Murdoch, who seemingly has not met a television interviewer of late he did not regale with tales of Google’s nefariousness.

Part of what he is saying is surely justified–it’s definitely a crisis for the news business.

And in Murdoch’s mind, the blame should largely fall on Google (GOOG), which he believes is profiting from expensive content others have created and that the search giant is not paying for to such a warped and massive degree that it makes a mockery of fair use.

In Silicon Valley style, Google defends itself by saying it sends valuable Web traffic to News Corp. and other sites, so perhaps a hand-written thank-you note is really the proper response.

That missive is definitely not in the mail from Murdoch, who instead has sent a series of poison-pen letters to Google.

Most notable is that he has threatened to “de-index” at least some of his content assets–which are not insubstantial–from the now-inevitable crawlers sent out by the search giant.

These are, of course, vintage tactics from the Global Media Mogul Playbook: Causing a public hubbub and spooking perceived enemies by threatening drastic action and implying dire consequences, while simultaneously dealmaking behind the scenes.

Trying mightily to make the stakes more dramatic, News Corp. has pulled Microsoft (MSFT) into the fray as a possible white knight–if you live long enough, you do see it all–for publishers.

Under this scenario, the software giant would fork over some sum of money to get News Corp. and perhaps other key content companies, such as Associated Press, exclusively and prominently featured on its Bing search site.

The reward, presumably, would be increased searching on Bing for the stuff consumers could now not find on Google.

BoomTown reported earlier this week that, in fact, Microsoft was unlikely to hand over any kind of king’s ransom to publishers.

As I wrote:

While a spate of reports has Microsoft execs girding the globe offering gobs of cash to content companies to block Google and favor its Bing search service, sources close to the situation caution that it is extremely unlikely that the software giant would pay giant sums for that pricey privilege, which many inside the company think will not help it gain much search share.

“While there is a lot of mutual interest, it’s doubtful Microsoft is going to pay to ‘rent’ a corpus of content that it does not own,” said one source close to the situation. “The economics are not there for anyone.”

In other words, this wrestling match is not about whether Google or Microsoft will serve up links to content online, but about how much–or not at all–they are willing to pay for doing so.

So, what’s really happening here? Here are five possibilities to consider, each of which is true in part:

1. Murdoch really means it

In this scenario, Murdoch, as well as others like AP’s Tom Curley, truly believe that Google–like that creepy salt-seeking alien from “Star Trek”–is sucking the life out of the media industry by making bank from its news content, but not giving back nearly enough in return.

Of course, a lot of these companies have willingly done distribution deals with Google over the years.

But now they don’t like it because the increasing money being made by Google, even as their revenue has suffered, has developed into a growing problem.

Which is simply this: There is a lot more money to be made in searching for content than in making it.

This realization has to shake content czars like Murdoch to the core, but it is indeed the situation they find themselves in.

Murdoch makes a fair point in that journalism costs money to make and it used to have a solid economic system under it until Google and others on the Web disaggregated it wholly.

Thus, online aggregators become “tapeworms,” as The Wall Street Journal Managing Editor Robert Thomson quipped.

Thomson also, on a recent panel at the Web 2.0 conference, said to Google’s front page head, Marissa Mayer, that she “unintentionally encourages promiscuity.”

Ouch. That remark, which was was quite striking if you were there to hear Thomson say it, said volumes more.

(Full disclosure: News Corp. owns Dow Jones, which owns this site.)

2. Murdoch really means to create a lot of confusion, in order to shake down Google

Well, it would not be the first time Murdoch and many others of his ilk have used public sharp elbows and saber-rattling to get what they want.

Except in this case, the algorithm experts over at Google know precisely–down to the tenth decimal–how much linking to News Corp. makes for them.

And it is not much, especially when looking at the vast sea of data Google serves up.

Its money-making is widely dissipated, from searches for vacation information to mapping to car-buying to health. While news-finding definitely is part of the mix, it is not at the center of the Borg.

Ironically–and oddly left out of this debate–it is Yahoo (YHOO) that has a lot of power in this arena, with massive content sites that shoot traffic all over the Web (including to this site).

But, what Google cannot and never can quantify–although I have seen co-founder Larry Page try once or twice–is the impact of public perception on the company, which has slowly morphed from being a benign, brightly-colored digital, librarian-like helper to a scary, answer-to-no-one, evil-doing monster.

The company’s growing influence over what people see and do not see on the Web is palpably frightening to publishers, advertisers and anyone who wants to be digitally discovered.

Bad luck for Google: Creating and then attacking bogeymen is a Murdoch talent, bar none.

3. Murdoch really means to create a lot of confusion, in order to shake down Microsoft

Also obvious is the full-scale obsession Microsoft has with Google. While the software giant’s execs try to hide it, their panic over the success of Google has been tough on the once dominant tech company, which has struggled in the Internet arena.

Worse still, Google rakes in the dough, while Microsoft, um, does not.

Finally, this year, Microsoft has created–with no small amount of much needed innovation–Bing, a laudable effort that is starting to show some traction.

While Bing still has a very small market share compared with Google–by a factor of seven to one–it’s definitely got some momentum.

And, after much turmoil, Microsoft finally did a deft and relatively inexpensive deal to join with Yahoo in a search and advertising partnership to give them both more heft, which will surely help matters.

More important, one of the ways Bing has differentiated itself is via product innovations and intense focus on search niches, such as health.

In this topic area, for example, Bing has struck a not-expensive content licensing arrangement with the Mayo Clinic in order to better feature content.

This is smart business and offers consumers something better and different.

But overpaying big media publishers for the same thing, even if they de-indexed Google at the same time, is not smart, unless it is for really niche things like special financial information.

And even then, there are so many other sources of information out there, it would not take Google long to mount a similar offering, even in the face of some kind of OPEC of News consortium.

Even more–how much do consumers love OPECs of any kind? Not much!

Sources at Microsoft agree:

“If it was everyone, that might become interesting. But even that has issues, since Microsoft is not interested in having exclusive news for a temporary period of time by overpaying for it. It’s essentially a marketing expense, and there are a lot better ways to spend that money to win market share than giving it to publishers.”

Finally, Microsoft has been to the Murdoch party before too, having been part of talks to fold News Corp.-owned social networking site MySpace into Yahoo, had Microsoft prevailed in its attempt to acquire it.

Microsoft missed that pricey bullet and might be more inclined to grow Bing the old-fashioned way–via innovation, marketing and product improvements–rather than just using up too much of its energy trying to mess with Google.

4. A deal will be made

My not-too-surprising prediction is that in the end, News Corp. and others will probably strike some kind of lesser deal with Microsoft–although it will tout the heck out of it–while taking some of its content behind a pay wall and, thereby, de-indexing it from Google.

More damaging would be if AP, which actually provides the most used news content online, removes its links completely from Google, because–unlike the premium content from other publishers–this is the bread and butter of consumer usage of content.

As to promotional material or links to television shows and movies from publishers like News Corp.? Well, it would seem the most self-destructive form of pique to remove those links from any of the top search engines.

That said, even if it really pissed me off for publishers to do so, I would probably switch to another search engine to find information on “Glee” if forced to. That’s how much I love those singing kids and Jane Lynch!

Finally, Murdoch has also threatened to challenge the fair use doctrine–which allows others to use copyrighted content within limits, as Google and many others do (such as this site).

While some think that is a bridge too far, it might be Murdoch’s best argument of all. Why should Google make a fortune on the content of others, even if only listing it? Doesn’t the sheer volume of what the search giant vacuums up make its use of fair use as a defense pretty ridiculous?

You can be sure Murdoch has his many lawyers and lobbyists all over this one, as does Google.

5. The truth is out there

In perhaps his most strident television interview, with his Sky News Australia service (which you can see below on–oh, the irony–on Google’s YouTube), Murdoch said about those who use Google to find News Corp. content:

“They don’t suddenly become loyal readers of our content. We’d rather have fewer people coming to our Web site but paying.”

That really is the honest truth in all this hubbub: Murdoch and other publishers have to find a way to get a some pool of dedicated online readers to pay enough to be able to then provide them with content that will keep them coming back for more.

That’s a business that Google truly cannot help or hinder, really.

And more to the point, it is also a business that Rupert Murdoch does seem to know a thing or two about.

Author Ken Auletta Talks About Google and Its "Lack of Emotional Intelligence"

Kara Swisher — Thu, 12 Nov 2009 08:50:35 +0000

Guess what? Google has too many Spocks and not enough Captain Kirks.

This is one of the many interesting insights BoomTown gleaned from a video interview last night–which you can see below–with well-known New Yorker scribe Ken Auletta, who has just written a new book, “Googled: The End of the World as We Know It.”

This “lack of emotional intelligence” at the search giant, said Auletta, reminded him a lot of the subject of one of his previous books: Microsoft (MSFT).

Oh, the delicious irony!

Auletta was feted at a lovely party last night at the San Francisco house of Common Sense Media’s Jim Steyer, where a range of Google (GOOG) execs, Internet folks and fans gathered to talk about the book.

It’s all about Google, its history and, most important, its impact on the world. And how you look at the powerful search giant depends entirely on whether you are the changer or the changed, as Auletta stresses in multiple anecdotes in the book.

Traditional media, for example, have certainly been mucho irked of late about the impact of digital technologies on their businesses and have not been shy about casting blame most heapingly on Google’s Silicon Valley plate.

And government regulators are also giving the company the hairy eyeball, much as they had previously done to Microsoft.

Auletta and I talked about all of this and more in the video interview below, in which he notes that he told Googlers at a talk at their adorkable Googleplex HQ in Mountain View, Calif., yesterday that they need to focus less on being engineering brainiacs and more on trying to understand how to deal with fears of their growing power.

Here’s my interview with Auletta about this, as well as what old media needs to do to deal with all the change Google has wrought. (And you can see interviews I did with guests at the party, too).

And below that is one of the disturbing number of mash-up music videos about “Star Trek” buddies, the highly illogical Kirk and the Vulcanish Spock, the geek bromance of all time.

[ See post to watch video ]

Please see this disclosure related to me and Google.

It Won't Be Baaaaaaack: "Terminator: The Sarah Connor Chronicles" Canceled (But Here's a Resistance Video From John Connor!)

Kara Swisher — Tue, 19 May 2009 07:04:32 +0000

Big, giant and prolonged sigh–as well as a cranky-old-lady shake of the fist–to our distant cousins over at the Fox television network, who dinged BoomTown’s favorite sci-fi show, “Terminator: The Sarah Connor Chronicles,” today.

I am officially in a Summer Glau funk, with major gadget withdrawal.

After much fake agonizing over the fate of “Sarah Connor,” Fox programmers finally stuck a fork in the series after two seasons. Loosely based on the movie franchise, the show garnered a passionate fan base online and off, but not enough to merit being renewed.

It’s ironic since the latest film in the cyborg-versus-man epic, “Terminator Salvation,” will open this Thursday.

It is the next blockbuster in a tech-heavy summer movie season, following the boffo reception that the new “Star Trek” has gotten (next up: “Transformers: Revenge of the Fallen”).

But the arrival of “Terminator Salvation,” with its noisy, Armageddon-is-nigh theme, could not save the more thoughtfully dark “Sarah Connor.”

Thank goodness, then, for YouTube and a very pissed-off and half-naked young actor named Thomas Dekker, who plays a teenage savior of humanity, John Connor, in the TV series.

In this perfect online video clip he did himself, the real-life (and very wild-eyed) Dekker calls Fox’s viewer comment line to express his support for the show in no uncertain terms:

Full disclosure: News Corp. (NWS) owns Fox, as well as Dow Jones, which owns this Web site.

Here Comes the Summer Movie Geektravaganza: Trek to Demons to Bots to Cyborgs to Potter!

Kara Swisher — Mon, 04 May 2009 19:34:53 +0000

With bootleg copies ripped on the Internet or not and with an $87 million opening weekend for “X-Men Origins: Wolverine,” it looks like the nerdiest summer movie season ever is off the races.

Hollywood, caught in the digital maelstrom, certainly is fine and dandy making bank by co-opting all the techie themes, gadgets and special effects, with a slate of movies over the next months that are like catnip to geeks of all kinds.

Including BoomTown, for example, which plans to fork over a lot of dough to pay for all the techtastic entertainment that those old media moguls can dish out before they collapse.

Here’s the roster and video trailers of key movies this summer:

Star Trek, May 8

It looks sassy enough with a hot, young cast in what is, like “Wolverine,” a prequel from when the crew of the Starship Enterprise were mere pups.

But one funny quibble comes from a post on the Mania.com blog called “10 Reasons to be Worried About ‘Star Trek’”:

“The New Bridge Looks Like an Apple Store: I love my iPod, but all the Apple Stores I’ve visited are located in the 21st century, not the 23rd. Made of frosted plastic shades and lawn furniture borrowed from the local Pinkberry, the bridge looks built to handle scenes of Kirk negotiating a kegger with the Vulcans more than the sparking explosions and flying bodies of the original.

One can imagine Kirk, trying to sweet-talk his latest alien conquest, and the bridge’s iTunes shuffle mode kicks in.”

Angels & Demons, May 15

Mathematical formulas, hidden puzzles to figure out the path of light through Rome, antimatter, Galileo?

Oh, I am there, except for Tom Hanks’s (playing Robert Langdon) shorter but nonetheless unfortunate haircut from “The Da Vinci Code.”

That and all the glaring but entertaining inaccuracies about science, religion and art from author Dan Brown. As if, I care.

Terminator Salvation, May 21

I am still in mourning over life without Summer Glau, given that the television show, “Terminator: The Sarah Connor Chronicles,” might be canceled after lackluster ratings in its second season.

I will have to trade that superb show for the grumpy grumbles of Christan Bale as John Connor in this fourth outing of the killer-cyborgs-from-the-future series of movies.

This one is set in the post-Judgment Day time, so it will have a lot of dusty, oily fighting with machines and grim grimaces about the dire situation (which, to be fair, bites).

Still, as always with my beloved “Terminator” movies, I’ll be baaaaaack.

Transformers: Revenge of the Fallen, June 24

More machines noisily battling it out while humans get stomped. Sometimes, I think these movies have been thought up by people who hate their cellphones.

Still, the first “Transformers” was funny about all the tech, and this one looks like it could be amusing too.

Also, given that I have two young boys, I have played with a lot of Transformer toys since the last movie came out and they really are cool.

Harry Potter and the Half-Blood Prince, July 15

I. Love. Harry. Potter.

I cannot control this fact and I am a wee bit perturbed by it.

But it is so, especially with all the creepy special effects that seem to get super-creepy in this sixth outing.

These movies just have gotten better and better, as have the young actors who play the main parts, so it’s hard to imagine it not being completely excellent.

Also, the whole pensieve thing rocks. The whole Dumbledore thing, not so much.

[PhotoShopped "Star Trek" publicity still courtesy of Mania.com]

Gadget-Loving President Obama Gets a Futuristic New Limo Ride

Kara Swisher — Tue, 20 Jan 2009 20:41:22 +0000

Besides getting, well, the whole country to run today, President Barack Obama is now taking a geek-tastic new ride down Pennsylvania Avenue to his new home, which should more than satisfy his clearly gadget-loving persona.

Obama, who has an ongoing obsessive relationship with his BlackBerry, much as the rest of us do, just got a spanking new presidential limo (pictured above), which the Secret Service is calling the “Beast.”

The last time General Motors (GM) improved on the car was at outgoing President George W. Bush’s 2005 inauguration, which means the struggling automaker is faster at upgrading than Microsoft (MSFT) is with Windows!

But, let us just say, it’s not very Prius-like, despite Obama’s speech today about focusing on the environment.

Indeed, the Cadillac limo has heavy armor five inches thick, run-flat tires, bullet-proof glass, an interior that seals, in case of a chemical attack, and other stuff that is too top secret to apparently reveal.

BoomTown is thinking, um, working Wi-Fi?

Refrigerated cup holders (and more of them, please!)?

A food machine that makes pizza from thin air like on “Star Trek”?

Or, miracle of miracles, that giant Apple (AAPL) iPod embedded in the steering wheel?

Post your suggestions as to what gadgets should be in the President’s new ride below.

The Sass of Kahn: Remembering Ricardo Montalban

Kara Swisher — Fri, 16 Jan 2009 09:22:02 +0000

BoomTown’s favorite space villain, as well as an alum of two of the “Planet of the Apes” sci-fi movies, Ricardo Montalban, died earlier this week in Los Angeles. He was 88 years old.

While he was also a movie star and helmed the always bizarre 1970s television show, “Fantasy Island,” those who love some serious scenery-chewing will never forget Montalban’s turn as the insane Khan Noonien Singh in the second “Star Trek” movie, “The Wrath of Khan.”

The fabulous movie was based on a famous episode of the “Star Trek” television series, “Space Seed,” about a race of super-men lost in space and found by the crew of the Enterprise.

While Montalban’s over-the-top performance is extreme in both cases, it is pure sci-fi genius too.

So, here is a great Internet video mashup of from “Khan,” with the terrific “From Hell’s heart, I stab at thee…” line, as well as a preview of “Space Seed.”

(And, I could not resist throwing Montalban’s classic commercial for the Chrysler Cordoba and his wonderfully languid way of saying “soft Corinthian leather.”)

The Wrath of Khan:

Space Seed:

Chrysler Cordoba:

Online Video: How Did BoomTown Leave Out the Trekkies?

Kara Swisher — Fri, 19 Dec 2008 09:37:02 +0000

After posting the hot new trailer for the fourth in the cyborg series, “Terminator Salvation,” yesterday, someone pointed out BoomTown was remiss in not including the one for the new “Star Trek” movie.

No longer!

“Star Trek” is out in May and will look at the early lives of James Tiberius Kirk and his sidekick and Vulcan-phenom, Spock, along with the rest of the future crew of the Starship Enterprise.

It’s directed by J.J. Abrams and looks really good, with the best opening I have seen in a trailer thus far.

Here it is:

The Beam Me Up, Scotty Hologram on CNN: Cool or Creepy?

Kara Swisher — Wed, 05 Nov 2008 13:15:09 +0000

BoomTown has finally gotten used to the silly gee-gaws television networks use on election night, like touchscreen maps and drawing all over the screen and jump-up numbers.

But one used by CNN last night–a hologram of various people beamed into the studio to look like they were with Wolf Blitzer and Anderson Cooper–was downright freaky.

Using lots of high-definition cameras, fancy computers and, I guess, magic, CNN reporter Jessica Yellin (see video below) was the first one to get the “Star Trek” treatment, beaming in from Chicago to New York.

Later, hip-hop musician Will.i.am was beamed in and preferred a “Star Wars” analogy. But the encounter was still kind of awkward, although you honestly could not look away either, as you can see from the video below (also coming in from Chicago).

Jessica Yellin:

Will.i.am:

I Can't Hold Her Together, Cap'n Zuckerberg…

Kara Swisher — Mon, 12 May 2008 07:38:53 +0000

Our good friends over at GeekCulture, whose very funny comics we publish regularly in Voices, sent us a link to this fine spoof picture of now-former Facebook CTO Adam D’Angelo, depicted as Chief Engineer Montgomery “Scotty” Scott in the classic sci-fi series “Star Trek.”

It is an apt goodbye for the 23-year-old D’Angelo, who is leaving the social-networking site to boldly go where few other geeks have gone before (that would be away from one of Silicon Valley’s hottest start-ups before its much-anticipated IPO).

D’Angelo, in a story broken by BoomTown last night (while not getting to eat our lovely Mother’s Day dinner), is leaving Facebook for parts unknown after, said sources, he “felt his responsibilities no longer fit well with his skills and interests.”

But kudos to the soft-spoken D’Angelo, a high school friend of Facebook Founder and CEO Mark Zuckerberg, for building a service that is one of the more elegant to appear on the Internet in years.

While BoomTown has been tough on the start-up for management woes and its nutty valuation and its need for a more robust business plan, there is no denying that Facebook itself–at its most basic techie core–is really well done.

Thus, for D’Angelo, I am guessing this is not the final frontier, before another Internet outfit beams him up.

(No, I could not resist.)