Google announces to pay $1 billion to publishers, end to claims of unfair profits

Google
Sundar Pichai

Google’s newly announced initiative Google News Showcase will pay $1 billion to selected publishers over the next three years for their content in the showcase. This step will lead to an end to publishers’ claims about Google’s unfair profiting policy from their content.

Google CEO Sundar Pichai has written in a blog post, ” This financial commitment-our biggest to date-will pay publishers to create and curate high-quality content for a different kind of online news experience. Google News Showcase is a new product that will benefit both publishers and readers: It features the editorial curation of award-winning newsrooms to give readers more insight on the stories that matter, and in the process, helps publishers develop deeper relationships with their audiences.”

However, this step is not entirely altruistic. The Showcase initiative is the result of continuously increasing pressure from the part of publishers and regulators in recent times about the way the search giant makes profit from the publishers’ work. So far, the policy of Google’s News service has been to collect story headlines and descriptions from the publishers’ websites. So the popularity of News service should actually be accredited to the publishers’ content.

Google kept the News service good for publishers by sending traffic to their sites, but according to publishers, Google receives the much better side of the deal because the content drives clicks to Google News platform and Google retains most of the profits coming from ads served on its platform.

Now given the profits generated by Google, $1 billion over three years is not a very large amount. However, some publishers have already signed the deal. According to Google, over 200 publishers have signed up so far, including Germany’s Der Spiegel.

According to the News Showcase, the platform will first be launched on Google News on Android devices, and then it will be available on iOS devices later this year.

Career

Subscribe