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Newspapers Shut But Google Alone Made $4.7bn From its Search and Google News in 2018

The News Media Alliance would reportedly make the study public on Tuesday

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FILE - A woman walks past the logo for Google at the China International Import Expo in Shanghai, Nov. 5, 2018. VOA

As small and medium newspapers shut shop and big media houses handed over pink slips to journalists worldwide, Google alone made a whopping $4.7 billion from its Search and Google News in 2018 – nearly as much as the entire US news industry made as a whole last year.

According to a report in The New York Times, compared to Google, the news industry in the US made an estimated $5.1 billion from digital advertising.

The report took the data from the News Media Alliance which represents more than 2,000 newspapers across the US.

“The journalists who create that content deserve a cut of that $4.7 billion. They make money off this arrangement and there needs to be a better outcome for news publishers,” David Chavern, President and chief executive of the alliance, was quoted as saying.

The alliance noted that its estimation is a conservative one, “as it does not include the value of personal data that Alphabet, Google’s parent company, gathers when users click on news articles”.

According to Chavern, an outcome of any conversation generated by the study would be the passage of the Journalism Competition and Preservation Act.

First introduced by Democrat David Cicilline in 2018, the bill would provide online publishers the opportunity to “collectively negotiate with dominant online platforms regarding the terms on which their content may be distributed”.

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FILE – A man reads a newspaper reporting on the summit between U.S. President Donald Trump and North Korean leader Kim Jong Un, at a newspaper stand in Seoul, South Korea, June 12, 2018. VOA

“The bill now before lawmakers would give news publishers a four-year antitrust exemption, allowing them to collectively bargain with the owners of online platforms over revenue splitting,” said the report.

Google was yet to comment on the study findings.

Nearly 40 per cent of the clicks on Google’s trending queries today are for news, which the tech giant does not produce itself.

Google and Facebook control the distribution of news and 80 per cent of external traffic is routed through these two companies to various news websites.

Also Read- Telecom Major Bharti Airtel Boosts 4G in Delhi-NCR

According to the New York Magazine, one in five local papers in the US has closed since 2004 and from 2008 to 2017, newsroom employment declined by 23 per cent, representing nearly 27,000 jobs.

The News Media Alliance would reportedly make the study public on Tuesday. (IANS)

Next Story

‘My Greatest Mistake’: Bill Gates Regrets Microsoft Losing on Android

Gates stepped down as the CEO in 2000 and as Chief Software Architect in 2008. Satya Nadella took over as the company's CEO in 2014

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Businessman Bill Gates exits through the lobby at Trump Tower in Manhattan, New York City, Dec. 13, 2016. (VOA)

Microsoft co-founder and philanthropist Bill Gates has said that his “greatest mistake ever” was the company losing on the Android opportunity, which has costed Microsoft nearly $400 billion and made Google the real winner.

In an interview during an event hosted by venture capital firm Village Global, Gates revealed that the mistake was to allow Google to develop Android and not creating a profitable model themselves, reports TechCrunch.

“In the software world, particularly for platforms, these are winner-take-all markets. So the greatest mistake ever is whatever mismanagement I engaged in that caused Microsoft not to be what Android is. That is, Android is the standard non-Apple phone platform. That was a natural thing for Microsoft to win,” Gates told Eventbrite cofounder and CEO Julia Hartz.

“If you’re there with half as many apps or 90 per cent as many apps, you’re on your way to complete doom. There’s room for exactly one non-Apple operating system and what’s that worth? $400 billion that would be transferred from company G (Google) to company M (Microsoft),” he emphasised.

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FILE – A sign for Microsoft is seen on a building in Cambridge, Massachusetts, March 18, 2017. VOA

Google acquired Android for just $50 million in 2005. The original iPhone came out in 2007 and the first Android device was released in 2008.

Android today has 85 per cent of the smartphone OS market and Microsoft Windows OS-based devices are nowhere to be seen.

Also Read: Spotify Paying Tax on Less Than 1% of Paid Subscribers: Apple

Microsoft has asked its users to switch to an Android or iOS device as it announced the end of support for Windows 10 Mobile.

The company told users that Windows 10 Mobile will stop receiving new security updates after December 10.

Gates stepped down as the CEO in 2000 and as Chief Software Architect in 2008. Satya Nadella took over as the company’s CEO in 2014. (IANS)