Off and apparently not really off, Apple’s negotiations with Facebook is a crucial linkup to control the growth and hegemony of Google in it’s need to index every click on the Internet and link them to highly personalised advertising campaigns which is Google’s only real revenue stream.
Apple needs Facebook and Facebook needs Apple because both are trying to put up walls against Google’s hegemony and of course they both want to use their protected data for their own advertising revenue streams. Together there are interesting synergies. Apple has a a lot of data about people’s media buying habits as well as books, computers, software, etc. Facebook has everything people say to their friends and the games they play, photos they post, etc. Apple offers some similar services and also now runs a gaming centre. Gaming on iOS devices is super hot.
Ping, the iTunes based social media site for following your friends music and video talking and the artists you like is a strong force pulling the two together. Talking and media and a common infringing competitior. Both Apple and Facebook want a deal.
Apple is a tough firm to bargain with even as they are frequently pushing for deals without prior precedent. They have long experience in negotiating with movie studios, recording companies, book publishers etc. Even as Apple tries to redefine distribution strategies it drives hard bargains. Ask Verizon or anyone in the music industry.
Facebook is not in a weak position however. Their dramatic growth puts them in the elite league of tech super-firms where everything is in flux and there is everything to play for.
And Facebook is about to launch a fantastic slam dunk against Google. They’ll be launching a Facebook phone based on Android which will severe all ties with Google. No Google search, no Google maps, etc. The phone will link in with Microsoft’s search and maps et al and otherwise try to keep the user as much as possible inside Facebook’s universe. The phone will be cheap and Facebook services will be über easy to use. Use Google technology to build a wall against Google data gathering and undersell Google sanctioned phones. Nice!
