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December 02, 2006

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TG

Don - Agree with one of your assumptions - paying out the millions is not the way to go for GoogTube. But it is their money to loose. Having first hand experience dealing with those in Mountain View - not surprised they just don't get it - Google spent the first part of the video effort calling the "Content Owner" the competition. Now they want to "buy" the Content Owner. I am sure they have a few more these "Google stratgies" up their sleeve.

There is a better way to have a "proxy" platform for distributing content. Sure, the early efforts have failed. But that is not to say is cannot be done. What is needed is an independent party who is not in the "content business" to be the proxy. The real life implemenations are out there - the NYSE, NASDAQ are just two expamples of the same. Fedex is another example of someone who helps get the goods to the consumer, and tracks it for the seller. It should be no different for digital goods.

There are platform which will make it to market very soon. But in the euphoria of the billion dollar acquistions of "glue sniffing User Generated Videos", the real solutions don't get the press attention or for that matter the VC (not fashionable enough for them yet!). As you already know - markets have a way of sorting out the real solutions. You will see a few of these come to market in 2007. I can say that with confidence. I have been building one such platform for over 4 1/2 years. Will make sure you are on the short list for notifications.

Chris D

Hi Don,

In general I agree, however, I just want to differ with you in regards to your statement: "Remember, this is pure profit."

There's a brewing conclict that will be arising soon with respect to unions and other guilds (e.g. SAG, etc). I do not believe that it has been established how actors and other production people will be compensated for any such Google pay-off. Normally royalties would be paid for any broadcast of the content.

I think once the hurdles of compensation to the content owners have been cleared, there still remain the open issue on how royalties will be made for content that has been "licensed" but outside of traditional broadcast and the accounting that happens for royalty payments.

Another legal mess brewing?!?

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