Google makes money on news at the expense of newspapers. The diatribe is long-standing but how much does he really earn by collecting, without paying for them, the news he selects on Google News? The figure is sensational and it was the one who quantified it for the first time News Media Alliance, the association that represents more than 2.000 American newspapers, including the New York Times: it is a good 4,7 billion dollars a year.
The thesis supported by the News Media Alliance, of course, is that a part of that huge figure – roughly equivalent to all digital advertising generated in the information sector (5,1 billion) – must return to the newspapers which, it should be remembered, face considerable expenses to guarantee correct and documented information to their readers.
“The study clearly illustrates things we all already knew. The current dynamic of the relationship between the Google News platform and our industry is devastating,” he highlights Terrance CZ Egger, chief executive officer of Philadelphia Inquirer PBC, which publishes The Philadelphia Inquirer, The Philadelphia Daily News and philly.com.
The News Media Alliance has decided to disclose the research some time before the presentation to the US Parliament, during a hearing of the subcommittee of the House set for Tuesday 10 June on the relationship between large technology companies and the media. Meanwhile, Google's reply has already arrived: “These approximate calculations are inaccurate, as pointed out by numerous experts – commented a Google spokesman -. The vast majority of news-related searches show no ads.
“Furthermore – adds the note from the technology company -, the study does not take into account the value offered by Google. Each month, Google News and Google Search drive over 10 billion clicks to publisher websites which, in turn, generate significant subscriptions and advertising revenue. We have worked hard to be a collaborative and supportive technology and advertising partner for publishers around the world.”
