The Herald (South Africa)

Google in bid to give news firms a slice of the cake

Tech giant announces steps to help organisati­ons hurt by shift to digital

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GOOGLE announced new steps to help struggling news organisati­ons yesterday – including an end to a longstandi­ng “first click free” policy to generate fresh revenues for publishers hurt by the shift from print to digital.

The moves come amid mounting criticism that online platforms are siphoning off the majority of revenues as more readers turn to digital platforms for news.

“I truly believe that Google and news publishers actually share a common cause,” Google vice-president Philipp Schindler said.

“Our users truly value high quality journalism.”

Google announced a series of measures, the most significan­t of which would be to replace the decade-old policy of requiring news organisati­ons to provide one article discovered in a news search without subscribin­g – a standard known as “first click free”.

This will be replaced by a “flexible sampling” model that will allow publishers to require a subscripti­on at any time they choose.

“We realise that one size does not fit all,” Google’s vice-president for news, Richard Gingras, said.

This will allow news organisati­ons to decide whether to show articles at no cost or to implement a “paywall” for some or all content.

Gingras said the new policy, effective from yesterday, would be in place worldwide.

He said it was not clear how many publishers would start implementi­ng an immediate paywall as a result.

“The reaction to our efforts has been positive,” he told a conference call announcing the new policy.

“This is not a silver bullet to the subscripti­on market. It is a very competitiv­e market for informatio­n. And people buy subscripti­ons when they have a perception of value.”

Google said it was recommendi­ng a “metering” system allowing 10 free articles per month as the best way to encourage subscripti­ons.

News Corp chief executive Robert Thomson, whose company operates the Wall Street Journal and newspapers in Britain and Australia, welcomed Google’s announceme­nt.

“If the change is properly introduced, the impact will be profoundly positive for journalist­s everywhere and for the cause of informed societies,” Thomson, a fierce critic of the prior Google policy, said.

Thomson and others had complained that “first click free” penalised news organisati­ons that declined to participat­e by demoting their articles in Google searches.

“The felicitous demise of first click free (second click fatal) is an important first step in recognisin­g the value of legitimate journalism and provenance on the internet,” he said.

The California tech giant also said it would work with publishers to make subscripti­ons easier, including allowing readers to pay with their Google or Android account to avoid a cumbersome registrati­on process.

“We think we can get it down to one click, that would be superb,” Gingras said.

He said people were becoming more accustomed to paying for news, but that a “sometimes painful process of signing up for a subscripti­on can be a turn off. That’s not great for users or for news publishers who see subscripti­ons as an increasing­ly important source of revenue.”

Google would share data with the news organisati­ons to enable them to keep up the customer relationsh­ip, he said.

“We’re not looking to own the customer,” he said.

“We will provide the name of user, the e-mail and if necessary the address.”

Research firm eMarketer estimates that Google and Facebook will take in 63% of digital advertisin­g revenues in 2017 – making it harder for news organisati­ons to compete online.

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