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Mike-O-Matic on GooTube and The Power of Branding

Screenshot - 10_12_2006 , 5_52_27 AM_thumb.png
Another clear smart essay by Mike Arace.  His Blog is a daily read for me.

By the way, this kind of stuff, where marketing and brand name recognition dominate decisions and success, depresses the hell out of me and makes me wonder if there isn't a better way to run a world.

Some people have asked why Google would purchase the service when they had their own well-received competitor, Google Video. Others wonder how they could justify a $1.6 billion pricetag for a website with no substantial revenue model and huge copyright violation concerns right around the corner.
The answer is simple: branding.
...
I always looked at websites based on their technical merit.
...
It doesn’t even matter if they are technically better anymore. They own the mental associations that matter, and it will take a long, long time to change that.
From a competitive standpoint, Google realized that trying to hold back the tide with Google Video wasn’t getting them what they wanted. So they wrote a check.

http://mikeomatic.net/?p=97



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