Google Made $4.7 billion from the News it does not own
News is the basic essential element of social life people get to know about what’s going in the world. In this hectic and fast-paced world, people usually prefer reading news online rather in the newspaper. And here comes the social media and Search Engines like Google. The company usually provide news in the lower section below the search bar and people usually found related to them. So they opened it.
According to a study conducted by the News Media Alliance, Google made as much as $4.7 billion in 2018. Almost matching the industry which made an estimated $5.1 billion spread across hundreds of companies. These news are not owned by the company.
The rise of Google’s news function has been unprecedented. The company had made only around $100 million in 2008. The study conducted by the News Media Alliance, which represents more than 2,000 newspapers and websites across the US, shows that Google makes money from content that it does not even make.
Words from the President of Alliance
The journalists who create that content deserves a cut of that $4.7 billion, said David Chavern, the president and chief executive of the alliance, which represents more than 2,000 newspapers across the country, including The New York Times.“They make money off this arrangement,” Mr Chavern said, “and there needs to be a better outcome for news publishers.”
“News is an important form of content that sustains civic society,” Mr Chavern added. “I think everybody, from readers to writers to politicians, understands that if journalism goes away, that’s a horrible outcome for whether we’re able to sustain the republic.”
The News Media Alliance based its new report partly on a study done by the economics consulting firm Keystone Strategy. Keystone Strategy relies on a statistic that was made public in 2008 when a Google executive estimated that Google News brought in $100 million. The study also noted how much company revenues have grown since then, among other factors.
Factors from the Study
The study conducted by the News Media Alliance, which represents more than 2,000 newspapers and websites across the US. Shows that Google makes money from content that it does not even make. With the rise of social media, nearly 80% of news traffic is sent via Google and Facebook.
Two giant companies — Alphabet, which is Google’s parent, and Facebook — are major distributors for news publishers. The two of them ferry more than 80 per cent of external traffic to various sites. That is a far cry from the analogue days when media barons controlled how their publications reached the public and collected all the ad income they generated.
Outcomes:-The Washington Post and New York Times had a profitable last few years. However, it also added that one in five local papers in the US has closed since 2004 and from 2008 to 2017, newsroom employment declined by 23 per cent.
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