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Google aims to share revenue with news outlets, Why?

Google aims to share revenue with news outlets, Why?

Google is creating huge business across the world, undoubtedly. Whether you are a publisher or advertiser, it is an awesome platform for everyone. Recently, it wants to make amends with subscription based news outlets. It says it wants to make amends with subscription-based news outlets. The head of news, Richard Gingras, told this to Financial Times about the revenues sharing with publishers.

Mr. Richard says those who take advantage of its new subscription tools. Just like similar to its ads system. It is based on machine learning know-how and vast collection of user data. By this it finds potential new and renewing subscribers. This will take a cut from sales when people take action.

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Gingras also said, similar to ads, though, Google would not take up to 30 percent of the money. The terms will be “significantly more generous”.

Google aims to share revenue with news outlets, Why?
Google aims to share revenue with news outlets, Why?

The exec also rejects arguments that Google is trying to wrest some control from publishers. Publishers have the news subscription service of Facebook. Those who use Instant Articles that runs on its own website. “We don’t want to own the customer,” Gingras said.

It seems that Google is not ready to announce final details. And there’s no guarantee that every major publisher will accept such terms.

This situation may not be quite as easy as Google says. Although it is true that Google won’t have the same level of control as Facebook. It’ll still have considerable sway. After all, Google may be the key to helping publications grow their subscriber ranks. Being a publisher, do you really want to move away from a possible competitive advantage? (Source- Financial Times)

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