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Thanks to Google's research and news from Google News, Google has generated US $ 4.7 billion in online advertising revenues for media companies, which have lost a critical source of revenue, resulting reduction or closure of many of them. a media report said.
News is an important part of Google's business, according to a study published Monday by the News Media Alliance (NMA), which represents more than 2,000 newspapers in the United States.
The journalists who create this content deserve a reduction of $ 4.7 billion, said NMA President and CEO David Chavern at the New York Times.
The California-based internet giant has taken advantage of the work of press publishers in 2018 via research and Google News, he said.
That $ 4.7 billion is almost equivalent to the $ 5.1 billion generated last year by the US newspaper industry through digital advertising, the report says.
The NMA warned that its estimate of Google's revenue was cautious. On the one hand, it does not count the value of personal data that the company collects on consumers whenever they click on an article like this.
"They make money with this arrangement and the press editors have to get better results," Chavern said.
"The study blatantly illustrates what we all know so clearly and painfully," said Terrance CZ Egger, managing director of Philadelphia Inquirer PBC, which publishes The Philadelphia Inquirer, The Philadelphia Daily News and philly.com.
"The current dynamics in the relationship between the platforms and our industry is devastating," said Egger.
The NMA is making public the study before holding a hearing of the House subcommittee Tuesday on the interrelation of major technology companies and the media.
About 40% of clicks on Google's trend queries are about news. This is content for which Google does not pay, says the report, although it often features media titles.
Egger said that big tech companies should show some appreciation for the content provided by news publishers.
Two giant companies, Alphabet, parent company of Google, and Facebook, are the main distributors of newspaper publishers.
Both transport more than 80% of external traffic to different sites. It's far from badogue, when media barons controlled how their publications reached the public and collected all advertising revenue generated.
But Google and Facebook do not direct consumers of information to information sites out of altruism. On the contrary, their role as intermediary allows them to take a huge proportion of online advertising revenue. As a result, traditional media have lost a crucial source of revenue over the last two decades, leading in most cases to shrinking or disappearing.
The big tech companies "love this business.This is a good business where you write for them," added Chavern.
Chavern said he hoped that the result of any conversation engendered by the study would be the adoption of the law on competition and the maintenance of journalism, which would give press publishers an antitrust exemption from four years allowing them to collectively bargain with the owners of online platforms on their income. split.
"Information is an important form of content that supports civil society, I think everyone, from readers to writers to politicians, understands that if journalism disappears, the result is horrible to maintain the republic", did he declare.
Google, which has not responded to a request for comment, keeps most of its research and revenue data in a black box next to its algorithm, added the NYT.
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