By Natalie DeCoste
Google just secured the largest-ever cloud-computing contract with Spanish-language broadcaster Univision Communications Inc.
Google’s parent company Alphabet and Univision announced their new, multi-year, strategic partnership to accelerate growth across Univision’s portfolio of media and content properties. The deal will provide solutions that will enable Univision to build a forward-looking media company.
“Increasing demand for digital media and streaming content is a huge opportunity for media companies to connect with audiences in new ways. We’re excited to partner with Univision to use Google Cloud’s technology and platforms like YouTube, Play, and Android, to inform, entertain, and engage the next generation of Spanish-speaking viewers around the world,” said Sundar Pichai, CEO of Google and Alphabet.
The Google Cloud service will help Univision make its digital transition and enable the company to continue to create what it called “market-defining content” for the future generations of Spanish-speaking viewers. This will be achieved by consolidating Univision’s multiple digital distribution platforms, modernizing its production systems, creating a new customer data warehouse, and migrating key enterprise applications to Google Cloud.
All of the updates to Univision’s services will allow the company to apply artificial intelligence and machine learning across its content libraries to provide consumers with personalized recommendations.
“At Univision, we’ve set out to be the most important global Spanish-language media company, and our partnership with Google is a critical piece of our transformation. By leveraging Google’s technology platform and expertise, we will transform our infrastructure to bring our customers an enhanced media experience,” said Wade Davis, CEO of Univision Communications Inc.
According to company executives, Google managed to achieve this deal by packing its offering with benefits across its YouTube video platform, advertising, and search services. It is reported that the value of the deal could top $1 billion over its eight-year run, according to a person familiar with the terms.
Bundles have become a staple for cloud vendors to lure companies into making deals with them. Microsoft has at times also bundled products in large enterprise cloud deals, often including its Office 365 suite of business applications. Amazon has linked up its cloud business with other parts of its massive operations. WarnerMedia’s agreement with Amazon to get HBO Max on Amazon’s Fire TV involved extending its cloud contract with Amazon.
The bundling practice has drawn some concern from lawmakers that Google used its dominance in mapping and other areas to acquire cloud customers.
Google’s YouTube is also in the news because the service may leave Roku devices soon. Roku issued a statement on Monday accusing Google of attempting to control the platform’s user experience in a way that favors Google products as the two companies negotiate a contract renewal for YouTube TV. The company went as far as to ask Roku users to reach out to Google to urge the company to reach an agreement.
“Google is attempting to use its YouTube monopoly position to force Roku into accepting predatory, anti-competitive, and discriminatory terms that will directly harm Roku and our users. It should come as no surprise that Google is now demanding unfair and anti-competitive terms that harm Roku’s users,” a Roku spokesperson said in a statement Monday.
Consumers should take note that Roku reported that Google’s demands include special access to consumer data and for Roku to build a dedicated search result row for YouTube in the platform’s interface.
