Google CEO Eric Schmidt has stated that Google wants to work with news groups, including those owned by Rupert Murdoch, in order to establish a new revenue model. In what is turning out to be a West coast vs. East coast difference of attitudes and business philosophies, Google is extending the olive branch to patch up the differences and hopefully reach an equitable agreement for both sides.

A recent article states:

It is that, despite the endless debate about whether newspapers or other news organizations should charge for access to their content online, Google itself is agnostic. As James Fallows reported in the Atlantic the other day:

People inside the press still wage bitter, first-principles debates about whether, in theory, customers will ever be willing to pay for online news, and therefore whether “paywalls” for online news can ever succeed. But at Google, I could hardly interest anyone in the question. The reaction was: Of course people will end up paying in some form – why even talk about it?

“We have no horse in that race or particular model in mind,” Krishna Bharat, one of the executives most deeply involved in Google’s journalistic efforts, told me, in a typical comment… for Bharat and his colleagues, free-versus-paid is an empirical rather than theological matter. They’ll see what works.

I believe that the newspapers will work with Google and that it will be Google that can effectively set up a model that works for both sides. If the news groups think they can do this alone, they are sadly mistaken.

Bottom line: Do whatever will work and move on.

Comments welcome.

Source – Financial Times

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