Google is planning to share revenues with publishers who will take advantage of its new subscription system. The search giant said that the company will use both of its personal data and machine learning algorithms, to help news publishers identify potential new and current subscribers for a revenue split.
In return, it would take a cut from any sales when people take action. According to Google’s head of news, Richard Gingras, in company’s advertising model, the revenue shares are 70 percent however the revenue shares for publishers will be significantly more generous.
According to Nic Newman from the Reuters Institute for the Study of Journalism, it’s a step in the correct directions for both parties as publishers will get access of Google’s Wealth of data.
However, Google is not revealing final details and it’s not clear how many major publishers will accept the terms.
Mr. Gingras says, “Unlike other participants in the environment, we’re not trying to own publishers. If there are cases where we do cause the subscription to happen, we don’t want to own the customer.” “None of these changes the marketplace economics, people will pay for what they value.”
The company also said that advertising will no longer pay for high-quality journalism and earlier this month, it also introduced new measures to help subscription-driven publishers obtain and retain more customers. While working with news publishers such as News Corp, the New York Times and the Financial Times, Google has been hastened by vocal criticism by media companies.
In September, Robert Thomson, chief executive of News Corp said at an event in New York, “If you don’t sign up for ‘first click free,’ you virtually disappear from a search. And given the power of that Google platform, that is disadvantaging premium content of great provenance.