Balancing power: Google v. AP, Yahoo! v. Geocities users, AT&T v. Skype
We try to be good to one another. Sometimes it’s just about power. The Associated Press newswire told search engines to pay for showing stories, or to stop showing them. [Ironic link above: AP story hosted on Google.] How quickly would AP enter bankruptcy if none of their stories showed up in Google News or search results? Google’s playing nice. They can, because they have the power in this relationship. Yahoo! will kill Geocities later this month (26 October 2009). Millions of web sites, stores, online communities, blogs will vanish, along with their google juice. Geocities is a chunk of history for some, an online home for others. Yahoo! gave six months warning in its eviction notice. Yahoo! will move you to their paid hosting service. Yahoo! holds the power over Geocitizens in this landlord-tenant relationship. [Kudos to The Archive Team and the Internet Archive for trying to back up Geocities.] AT&T blocked wireless access to VoIP on the iPhone for two years. Just to see what Skype and Google would do. They had power over Apple before the first iPhone launched. Less so now that Apple is a worldwide success. Renters get power over landlords from their contract and from their government’s landlord-tenant laws. Those laws rebalance power, create some process for notice and appeal, and define penalties for abusing process or power. Skype is in the middle of a network of alliances, partnerships, antagonists, and dependencies. While some relationships are defined by market forces, many are driven by the struggle for industry and government power. Skype steps lightly. For every Skype government affairs person, the telecom industry has thousands. For every euro Skype spends on publicity and advertising to influence the public and regulators, the telecoms spend thousands. Skype is deft and agile, a guerilla going up against vested interests, avoiding brute force confrontations they could lose. Meanwhile Skype earned its own power. Skype spent six years defining a global brand people love and trust. Skype quietly framed regulatory issues in Brussels and Washington placing Skype on the side of democracy and freedom. Skype proved its legitimacy as a profitable business (although still a rounding error in AT&T’s 2009q2 Net Operating Cash Flow of $15.8 billion) and a competitor (8% of international minutes). Skype is investing in its power. Geek cred will come if its Skype as a Platform service is successful. Skype is spreading its political attention to smaller governments. Skype has new PR, advertising, marketing partners to reinvigorate Skype’s brand for what the company will become. Skype is building products to diversify its business model and create new sources of income. Skype is approaching a half-billion users. Skype will no doubt be a US$2 billion a year company by 2013. Skype will sit at the table with Internet and telecom giants. So I’m left with an incomplete thought. Will Skype be as tender with its power as Google? Will Skype be as courteous as Yahoo! with trusting customers? Will Skype abuse market power through partnerships as AT&T? Winston Churchill said the price of greatness is responsibility. What in Skype’s cultural DNA says do no evil? tags: skype, power, politics, ethics, moralsCall me at +1-510-316-9773, Skype me, follow @skypejournal and @Phil Wolff.
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