Google says ‘we don’t have’ to indicate how news organizations spend its $ 1 billion

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Alphabet Inc.’s Google has reached licensing agreements with more than 600 news organizations around the world, and announced on Wednesday that there will be a “huge increase” in users seeking additional content from specific publications as part of the new plan.

The update comes as major Internet service providers, including Facebook Inc., have been locked into serious conflicts over whether to offer fair compensation to publishers.

Google is in ongoing talks with additional publishers, including the United States, to spend $ 1 billion on what is known as the News Showcase.

The program for 2023 is the biggest attempt by Google to invest in a sector, accusing technology companies of reducing its advertising revenue. Integrated, Facebook and Google control half of the digital advertising market.

Google oversees publishers’ use of money.

“The purpose of our fee is to help publishers make it easier to participate in the event,” Brad Bender, vice president of overseeing Google News Surface, told Reuters. “But in the end it is in the service of creating this sustainable future for the news.”

But Google’s reluctance to hold publishers accountable for their financial decisions and business decisions leaves the media industry in a quandary after numerous attempts to support technology companies and improve its outlook.

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“It’s not ours to tell you how to run a news publisher’s business,” Google said.

However, News Showcase Steering Publishers Bender expressed optimism towards a brighter future, and said the company would support the project beyond the initial $ 1 billion.

“We are committed to being part of the solution,” he said.

Publishers from a dozen countries have agreed to license the content, Google said in a blog post Wednesday. Users can view content in Australia, Argentina, Brazil, Germany and the UK, with Italy joining on Wednesday.

In February, Google announced that 500 publishers had signed contracts.

What Google’s unique need for funding recipients is that they deliver a certain amount of content per day, Bender said. The fund helps publishers staff journalists organize content called panels featured in Google’s news and Discover applications, Bender said.

Users can “follow” publishers to get additional panels from them. Publishers including The Financial Times and the Canberra Times are generating 7,000 panels a day, with users registering 200,000 followers, Google plans to announce.

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The option to select additional content from some publishers was previously in Google’s newsletter, but as follows from News Showcase panels in the countries where they are available, Google reports a double digit percentage of the following.

Over time, Google hopes that publishers will be able to convert followers into paid subscribers or gain sales incentives from an increased audience of ad-supported content.

Fees for private publishers in France range from $ 1.3 million for Reuters newspaper Le Monde to $ 13,741 for local publisher La Voix de la Hot Marne.

Google has declined to comment on commercial terms in France or elsewhere.

Google Fender agreed to design the new plan, without consulting with the unions and other organizations representing journalists, many of which criticized private corporate funding in the United States for buying media companies, cutting costs and weakening content.

Ensuring that Google’s finance newsrooms grow is not the pocket books of the owners, but a conversation that groups of journalists should have with publishers, Google said.

Google, like other news-related features, said it had no plans to monetize the news showcase. (Paresh Dave Report; Compiled by Stephen Coates)

An in-depth report on the innovative economy from The Logic was brought to you in partnership with the Financial Post.

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Sophia Harrison

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I'm Sophia Harrison working as a part-time staff at the Costco since the past year until I become as an author at the iron blade, hope I can use my experiences with the supermarkets here.

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