Cynthia Brumfield, one of the smartest analysts around, and Mitchell Shapiro have just completed a massive report on Google as part of their Television 2.o series. Last night while reading the mammoth report, it finally dawned on me Google, video is not just an experiment, instead it is a virtual cash machine, that could quickly rival its text ads business in terms of size and scope. Cynthia and Mitchell say that unlike the text-ad business, the video business will be CPM based, and the company could get between $5 to $30 per 1000 video ad impressions.
Obviously all that depends on the content. I don’t care (and neither do the advertisers) much about a dumb mutt chasing his own tail. The content means, quality content that millions would want to watch on a daily basis, in a near television like quality. It would mean dealing with partners, and sharing the pie.
So it is no surprise the company has been getting increasingly serious about video. In order to get an entry into the very closed Hollywood universe, the company added Ann Mather, who was executive vice president and chief financial officer for Pixar Animation Studios between 1999 and 2004, to its board of directors. Mather, a former Disney executive is known to have deep SoCal connections.
If Cynthia and Mitchell’s financial assumptions are correct, then expect more action on Google Video.