Google will pay news organizations to display articles in a section of the Google apps. Two hundred companies will receive a total of one billion dollars in the next three years.
The deal is part of News Showcase, which will appear in Google News on Android and the Google app on iOS in the future. Media can place content there. These can be complete articles, but also previews of articles or just a number of bullet points through which a reader can click through to the site of the medium.
Google writes that it has signed a deal with more than two hundred publishers in Germany, Brazil, Canada and the United Kingdom, among others. The News Showcase stories can be read from Thursday in those first two countries. The company pays the publishers a total of one billion dollars, about 850 million euros, which is spread over three years. The plan had been previously announced, but not many details were known about it and it was not yet active.
Google has been criticized by media publishers for years for its declining ad revenue. The vast majority of advertisers nowadays turn to Google and Facebook instead of traditional media. In addition, Google has also been criticized for years by publishers for including articles and snippets in Google News. For example, European authorities tried to introduce a ‘link tax’ for this and in Germany, publishers wanted to prohibit Google from indexing articles. However, such initiatives never got off the ground. However, other tech companies such as Apple and Facebook did try to make similar deals with publishers to include articles in the services.