Google plans micropayment platform for newspapers
Google is set to roll out a micropayment system to help newspaper publishers charge for access to online news content.
The search giant has sent a document to the Newspaper Association of America (NAA) in response to a request for paid-content proposals, saying the system would be available to third-party publishers.
“While currently in the early planning stages, micropayments will be a vehicle available to both Google and non-Google properties within the next year,” the document said. “The idea is to allow viable payments of a penny to several dollars by aggregating purchases across merchants and over time.”
However, Google said only certain types of news content would be likely to attract paying subscribers, such as research articles.
“There will be some set of news content that is inappropriate for putting behind a pay wall. For example, basic reporting on the news of the moment that is covered by multiple sources,” Google said. “Users are unlikely to pay for access to this type of content, given that it is highly likely to be available somewhere online for free. The type of content most suitable for a premium/pay subscription service will likely include deeply researched pieces.”
Google’s plans come as more publishers are looking to follow Murdoch’s lead and introduce paid-for content on their news websites, including UK titles the Financial Times and the Economist.
Last month, Rupert Murdoch said he plans to implement a micropayment system for access to his news websites by next summer.
In response to News Corporation’s $3.4 billion (£2 billion) net loss for the year to the end of June, Murdoch said the free model era was over.
“Quality journalism is not cheap,” he said. “The digital revolution has opened many new and inexpensive distribution channels but it has not made content free. We intend to charge for all our news websites.”
At the time, Murdoch said he was willing to take the risk of leading the industry towards a new model.
“I believe that if we’re successful, we’ll be followed fast by other media,” he added. “We’re certainly satisfied that we can produce significant revenues from the sale of digital delivery of newspaper content.”
Since then, The Financial Times has announced plans to launch a pay-per-view model for access to the FT.com and on Tuesday, the Economist also followed suit.
Yvonne Ossman, publisher of The Economist in the UK, said: “Murdoch’s move is welcome. Newspapers are losing out to free content online and people will pay for analysis and debate.”
The Google statement said the NAA requested ideas for how its members could generate revenues for online content.
“It’s consistent with Google’s effort to help publishers reach bigger audiences, better engage their readers and make more money. We have always said that publishers have full control over their content. If they decide to charge for it, we’ll work with them to ensure that their content can be easily discovered if they want it to be.”