«It redefines the business model between content owners and companies like » he said. «We are making very good progress now with small, medium and large-scale studios.»

has also been in the rumor mill of late, as prominent tech blogs have been sparring over the nature of its clandestine talks with microblogging service Twitter. The latest rumors have and Microsoft both expressing interest in the startup's real-time technology. For that could entail an all-out acquisition, or, more likely, some form of technology-licensing partnership.

Schmidt said the company remains open to working with Twitter as it develops its business model, which Schmidt envisions as some form of tailored system. Twitter has recently said it is toying with different revenue models it hopes to implement later this year.

Looking ahead, the giant could be facing a copyright showdown with the news industry, if the recent saber-rattling of the Associated Press is to be believed. The AP recently announced its intention to pursue legal action against Web portals and aggregators that post content from the news cooperative and its member newspapers without paying licensing fees.

has a hosting agreement with the AP that Schmidt has said he hopes to continue, but there has been widespread speculation that AP will attempt to renegotiate as the newspaper industry struggles to squeeze more money out of the Web.


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