Globalisation now comprehends the movement not just of physical goods,
but also services, finance, people, information and ideas. As a result the
world is becoming ever more interlinked putting pressure on global, national
and local governance systems designed in a previous era by those with power and
influence at the time and, as trade agreements are negotiated, even now.
Technology continues to play an important role in communication, entertainment
and improving productivity. Convergence is leading to the merging of computers,
cell-phones, hi-fi, TV and other electronic devices, as well as the blending of
cable, wireless and satellite communication. The rise of outsourcing services
in countries such as India and the Philippines is underpinned by improvements
in the global telecommunications infrastructure.
The Internet plays a key role in all of this. Industry players are extremely active in producing new products and services, forming joint ventures or acquiring companies. Competition is fierce, particularly to gain access to the huge advertising revenues forecast. Litigation, protection of intellectual property and crime are all major challenges.
In the sections below, we list some of the key statistics and
developments for the two years prior to December 2007. To see how this fits
into our global outlook, we refer you to our
World overview. For more
recent information, we suggest you refer to the
MBendi Blog: Signposts to 2020 and the
twice monthly
MBendi
Newsletters.
In addition to the frantic M&A activity, numerous joint ventures
were announced.
As with M&A, Google was the company most active in major joint
ventures. In August 2006, Google and MySpace agreed that Google would provide
advertising on the MySpace website. In December 2006, Google and BSkyB formed
an alliance to take online advertising onto TV. In April 2007, Google won the
right to sell advertising on the 400 websites owned by China Telecom. In
November 2007, Google was in discussions with Verizon and Sprint Nextel about
developing cell-phone applications. In November 2007, Google unveiled a mobile
strategy and a new Open Handset Alliance of mobile and technology companies. In
December 2007, TomTom and Google launched service allowing addresses found on
Google maps to their GPS devices.
Google's new subsidiary YouTube was also active. In November 2006,
YouTube announced plans to show videos on Verizon mobile phones. In March 2007,
YouTube launched two BBC video channels. In August 2007, YouTube secured
royalties deal with the UK societies that collect royalties for 50,000
composers, songwriters and publications.
Yahoo was busy too. In December 2006, Yahoo and Reuters launched You
Witness for user-generated news photos and videos. In March 2007, AT&T
announced it wanted to renegotiate its 2001 agreement for Yahoo to sell
broadband under the AT&T Yahoo brand name. In April 2007, Yahoo was
appointed to be the exclusive provider of search and contextual advertising on
Viacom websites. In September 2007, Bebo, the UK social networking website,
agreed to use Yahoo adverts. In December 2007, Ebay relaunched in Japan in
partnership with Yahoo.
Apple started a number of content distribution joint ventures. In August
2007, Apple reached agreement from European cell phone service providers to
share iPhone revenues with Apple. In September 2007, NBC Universal declined to
renew iTunes agreement with Apple when it expired. In September 2007, Amazon
launched a music download service for Apple iPod users. In December 2007, Apple
and Fox set up service allowing customers to rent Fox films from Apples iTunes
digital media store for a limited period.
Asia saw several joint venture initiatives, some of which were mentioned
above. In October 2006, Viacom and Baidu.com announced delivery of MTV music
channels via the Internet. In September 2007, Warner Brothers and Aldar
announced plans to develop multibillion dollar media and entertainment hub in
Abu Dhabi. In October 2007, Japan's two largest newspapers and its largest
business newspaper announced plan to create joint news website aimed at young
people. In November 2007, Microsoft and India's Reliance Communications signed
a US$ 500 million contract to offer Internet television services in India. In
November 2007, Softbank and Alibaba were understood to be in JV
discussions.
News Corp and its new subsidiary MySpace were also active. In November
2006, News Corp and Softbank launched the Japanese version of MySpace. In
January 2007, independent music labels signed an agreement with MySpace. In
March 2007 and again in September 2007, NBC Universal and News Corp announced
plan to launch an online video website to compete with YouTube.
Other new ventures highlighted the trend to delivering more media via
more channels. In September 2006, the BBC and Microsoft agreed to jointly
develop the BBC's next-generation online service. In December 2006, HP entered
into a book printing deal with Amazon. In November 2007, Bebo gave media
companies access to its community. In November 2007, Vodaphone agreed to become
a user of the Nokia Ovi portal while in December 2007, Nokia announced a free
download service to Universal's entire catalogue. In December 2007, Viacom
signed an advertising and content distribution with Microsoft with Microsoft's
newly acquired adserver Aquantive replacing Doubleclick.
