Google is a search engine first and foremost. Even with Android being hugely popular, Google made 97% of its income from advertising. That equals out to around $8.5 billion in just the first quarter of 2011 alone. Being the default search engine for browsers like Firefox is very important. Every PC sold comes with Internet Explorer and Bing is the default..
Mozilla makes 97% of its income from Google. That equals out to $85 million. You would think that is very important to Firefox to keep Google on its good side, but maybe not. Firefox has approx 450 million users under its wing. If a search company like Google relies on ads to fund almost its whole company and Firefox is the biggest browser, Google needs them. If you take the $85 million that Google paid to Mozilla in royalties against the money they made in ads then it’s only a small bit of percentage of income from Google to remain the default search engine.
Bing is losing money. While the search engine is gaining ground on Google, it’s nowhere near the popularity of Google. Bing lost about $2.5 billion last year alone. So if Mozilla wants to take bids or even demand an amount for one of the companies to be default Bing would almost certainly throw an amount out that Google would find ridiculous. Mozilla could contact Bing and demand say…$150 million to be the default on Firefox which would almost double the company’s revenue in one move and would certainly bring Bing a ton more income. I guess the question is would Mozilla be OK with taking money from its main competitor? Who knows. The reason i bring this up right now is the contract between Mozilla and Google will expire in November. It may be a tricky winter for Google coming up. With iOS and Iphone 5, WP7 Mango and possibly Bing taking shots they had better come strong with whatever they have planned.
Category: Tech News
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Co-owner and Editor-in-Chief of GizmoNinja.com.
During the day I work in graphic design and also do photography. By night I try to play with programming and code of all different types. I love the opportunity to write for the site and hope to see it grow as time goes on.