Google offers a profitable model for news publishers

3:56 PM


Google is preparing a new subscription system to increase the earnings of its Internet publishers, and plans to share it with publishers using the new subscription system.

As a result of the news industry's intense complaints, Google will launch a revenue-sharing program with publishers that use new subscription tools, preparing to launch a new subscription system for online news publishers. 

Richard Gingras, the head of the Internet giant's news unit, signaled to the Financial Times that the company would be extremely generous in sharing revenue from subscriptions, signaling that subscription revenues would be more advantageous than advertising revenues.


Low Percentage of Subscription Fees Receivable

According to Richard Gingras, Google will not be able to get 30 percent of subscription fees for news subscriptions as opposed to advertising revenue . Of course, it's not clear how much Google will pay per subscription from publishers that use the new subscription tools, but it seems that publishers are giving up their coercion policy. 

And with the announcement Google made last month, it showed that it was a big step in that direction. The company had previously requested that publishers with fee-based news subscriptions share at least 3 stories free of charge each day, but it was announced that the policy was abandoned with a statement made last month.

Of course, Google is not the only company testing new applications for news publishers as news habits have shifted to the Internet. Facebook , which announced last month that it will introduce a news subscription system , began testing the system last week. 

Receiving this decision as a result of the news industry's intense complaints, Facebook announced that publishers did not want to come up with subscription fees to gain profits .

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