Google Pays Lip Service To Digital Publishers

Following the fall and making up out between Google and French news organisations over the digital publishing row it has been unveiled that the agreement document was only printed half an hour before the signing off ceremony. Marc Schwartz, the mediator appointed by the French government and Nathalie Collin, chief representative of the French Press considered calling off the signing due to unacceptable changes by Google. The document had to be rewritten and just about made the deadline. http://www.guardian.co.uk/technology/blog/2013/feb/04/google-french-press-entente?INTCMP=SRCH

Google had agreed to set up a £53m “digital publishing innovation fund” in order to boost online advertising revenue for new organisations in France. The European publishers who have been losing money had complained to governments in France, Germany and Italy. Their objection stemmed from the fact that Google was displaying content without having to pay for it giving readers access for free. Google retaliated by refusing to display European indexes if it was forced to pay for content. An agreement was announced on Friday 31st between the French government and Google stipulating that the news organisations were allowed access to Google advertising and in return Google could display “snippets” of news content in its search results.

‘France had appointed a mediator to lead negotiations with French publishers and they called the deal a "happy conclusion".

Google's chairman, Eric Schmidt, was present at the Elysée Palace with President François Hollande to sign the deal after what the president's office said were "intense negotiations".

"Our search engine generates billions of clicks each month, and our advertising solutions – in which we have invested billions of dollars – help them make money from that traffic," Schmidt said of the deal on the Google blog.’ http://www.guardian.co.uk/technology/2013/feb/01/google-52m-fund-help-french-publishers?INTCMP=SRCH

The digital publishing innovation fund may point towards a genuine cooperation between France news organisations and Google but a critic might say its mere lip service. If Google indexes new content without having to pay for it, it seems Google will subsequently set up a fund to assist publishers accrue future revenue. This seems more like damage limitation and does little to calm angry publisher but resolving the issue at heart. The news organisation came out with a solution that they did not ask for but goes some way to smooth things over. With that in mind, the comments of executive chairman Eric Schmidt appear rather condescending.

‘“Google has worked with news publishers around the globe for years to help them make the most of the web,” he explained, pointing out that the company’s Web searches generate “billions of clicks each month.” When you take that in conjunction with its advertising solutions, the project could generate additional revenue outside of the traditional funding streams journalism has used in the past. Furthermore, he added that the launch of Google Play gave publishers new way to make money, “including through paid subscriptions.”’

http://www.digitaltrends.com/international/google-to-create-digital-publishing-innovation-fund-for-european-publishers/