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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.

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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

Cyber-Security Project of Google Named ‘Chronicle’ Imploads in Trouble

Originally announced as an independent start up in early 2018 by Google's parent company Alphabet, Chronicle was was supposed to "revolutionise" cybersecurity

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One of the reasons why Chronicle was folded back into Google is the fact that staff compensation became a sore point. Pixabay

Cybersecurity project of Google named “Chronicle” is imploding in trouble and some employees feel its management “abandoned and betrayed” the original vision, media reports said.

Chronicle’s CEO and Chief Security Officer have already left and the Chief Technology Officer is leaving later this month while other key officials are eyeing an exit, according to the Motherboard.

In June this year, Chronicle lost its status as an independent entity when it formally joined Google to become part of its Cloud security offerings.

One of the reasons why it was folded back into Google is the fact that staff compensation became a sore point, because Google reportedly didn’t adjust Chronicle staffers’ salaries and stock packages, which were lower than those for other Google employees.

Originally announced as an independent start up in early 2018 by Google’s parent company Alphabet, Chronicle was was supposed to “revolutionise” cybersecurity.

Chronicle
Cybersecurity project of Google named “Chronicle” is imploding in trouble and some employees feel its management “abandoned and betrayed” the original vision. Pixabay

It was supposed to be an independent start up with its own contracts and policies — at least, that’s what CEO Stephen Gillett wrote when the business was launched.

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Employees have left because of a combination of Chronicle losing its original vision, a distant CEO, a lack of clarity about Chronicle’s future, and disappointment that the start-up has been swallowed into Google, according to interviews with five current and former employees, the Motherboard report added. (IANS)