Google to pay publishers globally $1 billion over three years for their news
As more people consume news online, there is now a shift from the traditional mainstream media to online news publishers. Today, Alphabet’s Google announced it plans to pay $1 billion to publishers globally for their news over the next three years, according to a report from Reuters.
In a Thursday announcement, CEO Sundar Pichai said the new product called Google News Showcase will launch first in Germany, where it has signed up German newspapers including Der Spiegel, Stern, Die Zeit, and in Brazil with Folha de S.Paulo, Band and Infobae.
After many years of criticism from news publishers, the latest announcement could help Google win over a powerful group amid heightened regulatory scrutiny worldwide. News publishers have long fought the world’s most popular internet search engine for compensation for using their content, with European media groups leading the charge.
The new product will also be rolled out in Belgium, India, the Netherlands, and other countries. About 200 publishers in Argentina, Australia, Britain, Brazil, Canada, and Germany have signed up for the product.
“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,” Pichai said in a blog post. Google parent Alphabet reported a net profit of $34.3 billion on revenue of almost $162 billion last year.
The product, which allows publishers to pick and present their stories, will launch on Google News on Android devices and eventually on Apple devices.
“This approach is distinct from our other news products because it leans on the editorial choices individual publishers make about which stories to show readers and how to present them,” Pichai said.
German publisher the Spiegel Group welcomed the project.
“With News Showcase and the new integration of editorial content like from Spiegel, Google shows that they are serious about supporting quality journalism in Germany. We are happy to be part of it from the start,” said Stefan Ottlitz, managing director of the Spiegel Group.