Media to Google: Pay for our content
Google to media: Get stuffed, its free.
Maureen Dowd talks to Eric Schmidt about the media getting some of those Google riches for its own
He declines to pony up money, noting that newspapers could opt out of giving their content to Google free and adding, “We actually like making our own money for obviously good capitalist reasons.”
Yes, there is a crisis in the media but like so many other crises, this one is based on poor economics. Many people point to issues of the declining quality of content that is hurting the media. This is no doubt true, to a certain extent.
But more so it is because the media doesn't understand the economics of its own business in the new online world. They love Google because it drives content to their sites. They hate Google because Google, through its targeted advertising, is really the only ones making money in this transaction.
They give links to Google for free but then demand payment. Paying for something you would otherwise get free is not a wise economic decision and Google is not staffed by dummies.
For too long, the media has been giving away its content, which therefore has become increasingly commoditized. You can basically read the same story or opinion anywhere on the web. Most news sites have really very little content that is differentiated and therefore valuable.
The media will not make money by giving away content, even if it makes up for it in volume.