Google says it will pay publishers $1 billion for news

Alphabet CEO Sundar Pichai speaks during a session at the World Economic Forum (WEF) annual meeting in Davos, on January 22, 2020.

Fabrice Coffrini | AFP | Getty Images

LONDON — Google said it will pay publishers around $1 billion for news over the next three years. 

The pledge was announced by Google Chief Executive Sundar Pichai in a blog post on Thursday. 

“I have always valued quality journalism and believed that a vibrant news industry is critical to a functioning democratic society,” Pichai said. 

News publishers including Rupert Murdoch’s News Corp and German media giant Axel Springer have been calling on Google to pay them for their content for almost a decade but the search giant has refused up until now. 

Google plans to pay publishers to create and curate content for a new mobile product called Google News Showcase, which will initially go live in Brazil and Germany before it is launched in other countries. Publishers including Der Spiegel and Die Zeit in Germany and Folha de S.Paulo in Brazil have signed up to be part of the rollout program.

“The business model for newspapers — based on ads and subscription revenue — has been evolving for more than a century as audiences have turned to other sources,” Pichai said. 

“The internet has been the latest shift, and it certainly won’t be the last . . . we want to play our part by helping journalism in the 21st century.” 

Google isn’t the only U.S. tech giant under pressure to pay for news. Facebook is also being asked to make regular payments to the media industry for sharing content on its platform. 

The Australia Competition and Consumer Commission (ACCC) has developed a mandatory code for the tech giants to pay for their use of news content. If approved, a draft code announced by the ACCC in July would allow Australian outlets to secure payments in a matter of months.

Australian publishers have suggested Google should pay them $600 million a year but Google has reportedly rejected that call. 

Angela Mills Wade, executive director of the European Publishers Council, told the Financial Times that her members were “quite cynical.” 

“By launching a product, Google can dictate terms and conditions, undermine legislation designed to create conditions for a fair negotiation, while claiming they are helping to fund news production,” she said.

Source link




Can ‘Schitt’s Creek,’ ‘The Good Place’ win big for cable?

Regina King stars as Angela Abar aka Sister Night in HBO's "Watchmen."HBOHeading into the Primetime Emmy Awards ceremony on Sunday night, it may...

Hasbro, Dunkin’ Brands, AstraZeneca, Delta & more

Check out the companies making headlines midday Monday:Dunkin' Brands — Shares of the restaurant chain spiked more than 15% after the company said...

810-HP Shelby GT500CR Carbon Edition Sports a Carbon Fiber Body

Have $298,000 burning a hole in your pocket and a hankering for a classic-looking Shelby GT500 with a modern twist? Meet the GT500CR...

Trump advisor Kushner defends plan to cut drug prices

President Donald Trump's senior advisor Jared Kushner told CNBC on Tuesday he supports the president's plan to cut drug prices, arguing that the U.S. shouldn't...

YouTube tightens rules on conspiracy videos, but no QAnon ban

YouTube CEO Susan Wojcicki speaks during the opening keynote address at the Google I/O 2017 Conference at Shoreline Amphitheater on May 17, 2017...