Google becomes an entertainment company

The Internet has created new competitors for Apple that provide a study in contrasts. The biggest of the new entrants is Google. Until recently, Google pursued a business strategy markedly different from Apple's, which developed a DRM infrastructure focused on the iPod and its iTunes software to grow its business as a content distributor. Google has relied on delivering user-targeted paid advertising to personal computers in exchange for free content delivered by lightweight Web clients that interface its powerful search engines via its massive server farms. Advertising accounted for most of its $1.5 billion profit in 2005. However, in its quest for new revenue and growth, it's becoming apparent that Google's strategy is morphing rapidly to adapt to changing market conditions.