- alphabet inc WELL The Google News Showcase program has encountered a hurdle as some media outlets are unhappy with certain contract terms or payments. Wall Street Journal reported with reference to people familiar with the situation.
- Announced in 2020 as part of a $1 billion global investment in partnerships with news publishers, the program is nearly a year behind its planned launch schedule in the United States
- The program pays publishers to feature their content and enables curated panels of related stories on Google News and some other Google platforms.
- Links direct readers to news organizations’ websites and, in some cases, allow users free access to content that is usually paid for.
- For some US outlets, a sticking point is a contractual clause from Google that says a showcase deal represents all payments a publisher is entitled to for its content.
- Several factors have caused delays in negotiations with the US media. Several publishing executives said some publishers feel Google isn’t paying enough and are rejecting certain terms of the deal, including a provision that limits their right to otherwise get more money from the tech giant.
- According to the magazine’s documents, in at least some cases, Google has agreed to pay publishers 25% of their promised showcase fees before rolling out the feature in their market.
- Price promotion: GOOG shares are down 0.21% to $110.25 during the premarket session on the last check Thursday.
- Photo by Spencer E. Holtaway via Flickr
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