It was just a few weeks ago that we were suggesting all the talk about YouTube's inability to be profitable was suspect, and there was increasing evidence not that YouTube was profitable yet, but that the claims of how much they were losing didn't take into account the real situation. Still, it comes as a bit of a surprise for Google to come out with a blog post that basically tells everyone that they are way, way, way off in thinking that YouTube is a huge money loser for the company. The reason it's a surprise is because it actually seemed like Google enjoyed having people think that YouTube was such a loser, since it held back competition. Perhaps there was some fear that it was also holding down the stock price or something. Either way, hopefully we can put to rest the silly idea that YouTube is some sort of blackhole for money.
We're seeing a bunch of folks pointing out that evidence collected by the Washington Post's computer security writer, Brian Krebs, is basically responsible for getting that company kicked off the internet. Krebs is a fantastic reporter, so I don't doubt the story -- but I'm always a little skeptical of stories claiming that a huge percentage of spammers have been knocked offline. We see such stories every few months, and it never seems to have any real impact on the amount of spam out there. Just last month there was a report claiming that the world's largest spam operation was shut down, but the actual amount of spam flowing across the network did not decrease.
This case is a little different, in that it didn't shut down the spammers themselves, but rather a hosting company that apparently many of the largest zombie botnets relied on. However, it seems quite likely that they'll find some other hosting company that will gladly take them on and everything will be up and running again. That's not to say it's bad that these guys get taken down -- but at some point people should realize this seems like a big game of whack-a-mole, and there may be better, more efficient ways to tackle the problem.
So, we were a little confused recently when Toyota sued a nude model for using the name Alexus, as it seemed difficult to believe there would be any "confusion" between the two. However, who knew that Lexus was getting into the entertainment business? We've talked in the past about BMW's famous BMW Films effort, as an example of how the future of advertising needs to recognize the blurring lines between content and advertising. In BMW's case, each film was directed by a famous filmmaker, starred actor Clive Owen, and included a BMW that tended to act as something of a co-star. The films were entertaining as pure content, rather than as traditional advertising.
Since then, we've seen plenty of other companies try similar things, with varying degrees of success. For example, the recent set of Microsoft ads involving Jerry Seinfeld and Bill Gates received a very mixed reaction -- in part because people expected them to be like traditional ads, pitching a specific product, rather than creating a story line that was entertaining in its own right.
Now, one of our readers, William Jackson, points us to an experiment apparently by the car company, Lexus (a part of Toyota). It's called L Studio, and appears to be something of a web video platform, showing a bunch of professionally produced videos. As Jackson notes, some of them do involve a Lexus, such as this documentary about an artist creating a piece of artwork out of a Lexus:
However, others seem to have absolutely nothing to do with Lexus automobiles at all, and often star recognizable actors, such as this video starring Famke Janssen trying to juggle her dating life with her dog:
I'm sure some will complain that these sorts of videos don't make any sense, as they do nothing to promote the vehicles -- but it may be worth seeing where this campaign goes from here. Some of the videos are entertaining and help put Lexus' brand around "lifestyle" content, and that could get people to start associating the Lexus brand with a certain type of lifestyle. Sure, it might not be as "in your face" as sponsoring a TV show or doing product placement, but if the content is good and gets people to seek it out rather than intrude on what they're doing, this could be a very effective branding campaign.
Way back in 2004, we started asking when Google was going to become "the web platform," finally opening up its infrastructure to build out new and useful applications. It seemed obvious at the time that the next real battle was going to be in that space, but time and time again, Google has missed opportunities to do so, opening up a window of opportunity for other players. Surprisingly, the closest to realizing the vision has been Amazon.com with its Amazon Web Services offerings -- which was something no one would have expected back in 2004. Back then, the questions were more about Microsoft, Yahoo and Google. Microsoft, however, can't seem to get past its desktop software DNA (though, it talks a good game) and Yahoo! (typical Yahoo!) has bits and pieces here and there but can't seem to pull together a comprehensive web platform strategy. For a brief period of time, it looked like Facebook might become a true web platform, but it's been too focused on locking apps in rather than enabling outbound efforts.
So, now, finally, nearly four years later, Google has come to its senses and announced its entrance into the web platform space with its aptly named AppEngine offering. In many ways, it's similar to Amazon's offering (which is a good thing!), though much more integrated, which could prove to be either a problem or a benefit depending on what you want to do. Amazon allows for a much more a la carte setup, which could appeal to many, while you have to really embrace Google to enjoy the benefits of its setup. A big open question is pricing. A huge part of the appeal to Amazon's Web Services platform is that it's crazy cheap. You really have to be working it quite hard to build up any sort of significant charges. Google hasn't released info on pricing yet, offering AppEngine up for free to the first 10,000 developers (who appear to have snapped up all the open slots in less than two hours). That free service has some limitations: initially 500 MBs of storage and enough bandwidth to serve approximately 5 million pages per month. There's some suggestion that the final service will always be free up to that level, with charges starting if you go beyond that. If so, that could certainly appeal to people who just want to try some stuff out for free.
While this may seem like something that will only appeal to serious techheads, this could be a really big deal. A lot is going to depend on how well AppEngine really works, and how open it really turns out to be. However, if it really does provide another super cheap (or even free at low levels) full service, highly scalable platform for all different kinds of applications, things could start to get very interesting pretty quickly. Between this and Amazon's Web Services, the very concept of developing online applications may finally start to change in significant ways for the better. The easier it is to develop and deploy highly scalable web applications, the more innovative and creative solutions we're going to start to see.
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