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Google CEO Warns Newspapers Not To Anger Readers

Barence writes "Google CEO Eric Schmidt has hit back at newspaper bosses, warning them that they risk alienating readers in their war against news aggregators such as Google News. 'I would encourage everybody to think in terms of what your reader wants,' Schmidt said at a conference for the Newspaper Association of America. 'These are ultimately consumer businesses and if you piss off enough of them, you will not have any more.' Schmidt's rebuke follows a sustained attack on Google by newspaper bosses such as Rupert Murdoch, who have accused the search giant of 'stealing' their content without payment." Schmidt also suggested that newspapers need to expand their distribution methods to make better use of mobile technology, and a NY Times piece argues that the Associated Press' struggle against aggregators is futile since they're largely trying to give news stories to consumers for free anyway.

22 of 328 comments (clear)

  1. Yeah this reader's _____ by commodore64_love · · Score: 3, Insightful

    First they discontinued my evening paper & replaced it with the morning paper, which I don't like. Then the idiot delivery woman keeps throwing papers in the middle of the street, where they get squashed by passing cars (or disappear completely). I've complained but the news executives have done naught to fix the problem. What's this have to do with the article? It all comes-back to the same root problem:

    - They care more about the almighty $$$ then they do about keeping the customer happy, and that is why they will ultimately fail.

    --
    "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    1. Re:Yeah this reader's _____ by Hatta · · Score: 3, Insightful

      Well studies show that FOX is *not* a conservative channel, but in fact lies dead-center in its views (relative to the American population

      Studies also show that the more a person watches FOX news, the more likely they are to believe incorrect facts. The only reason FOX seems "dead center" to you is because Americans are ridiculously right wing. It's not the job of a news organization to reinforce the biases of their audience. They have a responsibility to report things as they are, and not as one wishes to see them.

      There really is no left wing media in America. That NBC leaned towards Obama in the last election means nothing, since Obama is center-right by the standards of most of the world. Why do you think he was fighting against increased regulation of our financial industry during the G20 meeting that just happened?

      If you want to see some reporting that's actually biased towards the left, watch Democracy NOW!. THAT is the left wing equivalent of Fox News. But it's still more factually accurate than Fox. After all, reality has a well known liberal bias.

      --
      Give me Classic Slashdot or give me death!
  2. This Just In... by Jawn98685 · · Score: 5, Insightful

    When it comes to what news "consumers" want, Google CEO "gets it". Old media CEO's don't. Film at eleven.

    OK, so this ain't exactly news, but jeezuz, how hard is it to grasp the fact that a large number of the eyeballs viewing your "news" arrive at your web site via a link on Google news?

    Hey, Eric. Cut one or two of them off for a week. Given them a heads up first, and suggest that they pay attention to their traffic numbers. Then let's all ask their board of directors what they think of how things are going when no one "steals" their content.

    1. Re:This Just In... by coryking · · Score: 4, Insightful

      How about instead of laughing, you think about what he actually means. Instead of thinking "OMG, stupid suits LOL", think "this guy knows more about business and marketing than I do, but doesn't know tech, what does he really mean".

      We don't want users to search for our site. We need to focus on the users who are on our site and make it easier for them to find the content they want via our internal search

      Translation:

      We want people who hit our site to stick around. If people come in via Google search, I'm afraid they aren't going to browse our site and look at other bits of content. I think that by encouraging people to use our own search, they might stay for a while.

      And he is right. People who come into a site via Google Search are the "wham, bam, thank you ma'am" kind. They hit the page, and go away. The only way to make money on this kind of traffic is to plaster your stories with advertising in hopes they exit via an ad rather than the back button. Is this what you want?

      If you really want to be helpful, you should think about what the person means and help solve that. How can you make inbound Google traffic "sticky"? If you can't how can you maximize your ad revenue from that traffic? Is there a way to do both? Can you offer user-registration and when you visit when you are logged-in, strip out most of the ads (registered users never click on ads)? Can you somehow alter the layout of the page to offer additional content that might lure search engine traffic into reading more than just one page?

      Think like a business person, not a nerd. Your president makes perfect sense.

  3. Google Provides the Consumer Options by dcm684 · · Score: 3, Insightful

    The behavior of the newspapers in regards to services like Google News has always surprised me. Google is providing the papers another means of distributing content, and its at no cost to the paper. Personally, if I see a snippet of news on something that interests me, I will click the link and go straight to the news source's website. I have always assumed that that is a desirable outcome for the news sources.

    The only thing that Google does is provide the consumer with more options. Since I use Google News I am more likely to use multiple sources for my national and global news. I guess this scares the newspapers a little bit.

    1. Re:Google Provides the Consumer Options by nicolas.kassis · · Score: 4, Insightful

      Except they want to increase their profits and making google pay is an easy way to do it. If they complain they might get something more. I don't think has really anything to do with reality as much as with them trying to negotiate a deal.

  4. The newspapers should do some user surveys by Reality+Master+201 · · Score: 4, Insightful

    I'd be willing to bet that there's a growing chunk of the online population who, like my self, may read content from newspapers, but only do so through online aggregators.

    I never check the NYT, Washington Post, NY Post, etc. directly - either the paper or online versions. If I read an article at any of their sites, it's because it's been linked to on a blog or came through in an RSS feed from an aggregator.

    They're assuming that people use their websites the way people use their newspapers, and that's probably not the case anymore, and surely won't be in the future.

  5. Re:Google Lawyer Alexander Macgillivray's Blog by itlurksbeneath · · Score: 5, Insightful

    Ah, the state of corporate America these days. When the options boil down to - spending 20 minutes of a computer analysts time to put a proper robots.txt file up or spend tens of thousands of dollars to drag another company into court - and you pick the latter option?

    What's the real motive here?

    --
    Have you ever considered piracy? You'd make a wonderful Dread Pirate Roberts.
  6. I'm a little confused by AdmiralXyz · · Score: 4, Insightful

    Can someone please explain to me what exactly is these newspapers are complaining about? I just don't get it. If Google stripped all the content off the websites of these newspapers and attached their own ads to it, then I would see the problem, but that's not what they're doing.

    Google News directs you to the newspaper's website. If I get to a nytimes.com article through Google News, it's the exact same website as I would be served if I typed nytimes.com into my browser and navigated to the website. Same content, same ads. Google is giving them traffic, so I fail to see what the problem is.

    Is it that there are also ads on the Google News page itself?

    --
    Dislike the Electoral College? Lobby your state to join the National Popular Vote Interstate Compact.
  7. Re:Google Lawyer Alexander Macgillivray's Blog by nb+caffeine · · Score: 5, Insightful

    To make the lawyers rich

    --

    "Something's wrong with you...and I hope we never do meet again." - Deftones When Girls Telephone Boys
  8. He may be a lawyer, but he doesn't understand by VShael · · Score: 5, Insightful

    'These are ultimately consumer businesses and if you piss off enough of them, you will not have any more.'

    He may be a lawyer, but he doesn't understand who the consumers are in the newspaper model.

    Newspapers, like much of modern media, sell audiences to advertisers.
    So asking the news media to think of their readers, is meaningless. They never do, except as a product to sell to the advertisers.

    This is ultimately an Advertiser business.

    1. Re:He may be a lawyer, but he doesn't understand by DeweyQ · · Score: 3, Insightful

      I can't see your sarcasm or irony flag, but I'll respond as if you truly meant it.

      "Ultimately" is the key word that seems to be in contention. As you point out, you need to sell readers to advertisers. Therefore, annoying your readers and driving them away (which the newspaper business is doing with aplomb these days), will hit your advertiser-based business model pretty hard in the end.

      I will absolutely agree that asking the news media to think of readers is usually meaningless, but that's because many don't seem to get who they "ultimately" serve.

  9. Another piece of the Bush legacy by Anonymous Coward · · Score: 3, Insightful

    The big media companies had over 8 years to start throwing hardball questions at ol W, their failure to do so has rendered them useless in my eyes & in the eyes of many Americans.

    Nowadays, it is pretty much assumed that if you want the full story on any given news article you need to go to at least 3 different sources (with at least 2 of them being non-mainstream.)

    I dont even bother with newspapers anymore, just like teevee news, theyre nothing but fear and fluff. You dont get anything in-depth stories except about the kitty-cat who found his way home over 1000 miles.

    You guys made this bed, you lie in it.

  10. Re:Lose readers... how about lose news sources? by robably · · Score: 4, Insightful

    The problem is that google is pulling them away from their own web sites

    Google isn't pulling people away - people are actively seeking news aggregators and Google happens to be one of the best. People just like to use aggregators when looking for anything, be it news, small ads, auctions, whatever. With eBay it makes it easy to find the best deal, with news it makes it easy to find more details or to get a more balanced view by comparing what different sites report.

    If the newspapers wanted to they could provide their own news aggregator, showing news stories from other newspapers next to their own, and as a dedicated news site they could probably do a better job than Google. They just haven't grasped that it would work in their favour.

  11. Re:Google Lawyer Alexander Macgillivray's Blog by ArcherB · · Score: 3, Insightful

    Ah, the state of corporate America these days. When the options boil down to - spending 20 minutes of a computer analysts time to put a proper robots.txt file up or spend tens of thousands of dollars to drag another company into court - and you pick the latter option?

    What's the real motive here?

    What you have here is a buggy whip maker suing the automotive industry in an attempt to save his job (or at least delay the inevitable).

    --
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  12. This is Madness. by ObsessiveMathsFreak · · Score: 4, Insightful

    I wrote a comment yesterday about how the newspaper industry has lost most of an entire generation of readers due to the declining quality of their product. Now they are standing to lose all of that generation, and the next one coming, by making their content effectively inaccessible.

    Like it or not, most people under 30 get their news from the internet. Some will read the occasional newspaper, or watch the TV, or listen to the radio, but the bottom line is that they are spending more time online than all three put together. They're going to look for information and news online before they look for it elsewhere.

    People want one click news. Google news, while it isn't perfect, is providing them what they want. An easy way to get the latest headlines, and to search for news topics that interest them and that may not have recieved general coverage. Think about what the service is doing. It's combining the strengths of online, national and local news sources, all in one feed. As a reader of news online, I can safely say that well over 95% of the news stories I have read online were come by via the Google news service.

    Newspapers, for some obscure reason, don't seem to like this. Instead they would prefer to make it harder to find their content, and ultimately harder to read it. Imagine an online business that demanded that Google and every other search engine stop indexing their content. It would be lunacy, yet that's exactly what these newspapers are doing.

    There is a fundamental law to Internet business, if I may:

    If you put barriers between users and your online content, your site will die.

    It doesn't matter how high quality your site's content is. If people cannot get past the barriers between them and it, they will turn to your competitors, one of whom will have information they can access quickly and conveniently. Time and again it has been shown that the more open and accessible a site is, the more traffic it will accumulate. True, there may not be much quality control on the traffic (Myspace, Gamespot, etc), but if your site is advertisement based, this will not matter a fiddlers to you.

    So here is Google, doing newspapers a favour, by making their online content easier to acess and read, ultimately drawing more eyeballs to the ads on their story pages. And what do they do? They spit in Googles face and demand cold hard cash for every ten word story excerpt. It's lunacy. The product of minds either deranged or deluded. These people seem unable to grasp the consequences of their actions, unlike Google, who has understood the mechanics of all this from day one.

    If the The Guardian manages to get its content delisted from Google news and other feeds, then the only effect will be that I, and millions of others, will no longer click into The Guardian website. It will be almost as if their site did not exist. And because people are moving to online over print news, these newspapers will lose an entire generation of not just online readers, but readers period. They are asking to drink hemlock, nay, demanding to do so.

    I don't know who is running these newspapers. But whoever they are, they clearly do not actually understand how the newspaper industry actually work anymore. They seem to be like the bankers and economists in the financial industry, who knew so little about their businesses that they, against all reason, rationality and common sense, threw all their money, reputations and futures away for nothing. There is no logic to the decisions of management at these newspapers, yet they persist in this folly.

    This probably points to some underlying pathology in the way western companies in general are run. They seem to be quite happy to lose every last one of their customers as long as they retain complete control over the dregs that remain.

    --
    May the Maths Be with you!
  13. Re:Google Lawyer Alexander Macgillivray's Blog by Richard_at_work · · Score: 4, Insightful

    That analogy would be correct if the automotive industry were using the buggy whip makers product either in whole or in part in their own product. They aren't, so the analogy is a bad one.

  14. Comment removed by account_deleted · · Score: 4, Insightful

    Comment removed based on user account deletion

  15. Newspapers abrogated their social contract by Phoenix666 · · Score: 5, Insightful

    long ago. It has been at least a decade, possibly longer, since American newspapers decided to stop reporting and become repackagers of AP feeds. If you saw Google News when it first started, that fact was so glaringly, embarrassingly obvious that they took it down. That is, every single paper they were pulling from had the exact same articles, pulled from the AP, with perhaps a minor title change or slight change to the wording. The San Jose Mercury looked almost identical to the Boston Globe.

    Then you have the abject failure of newspapers to investigate and confront at least two of the biggest disasters to occur in the past decade, the thin fabric of lies the Bush administration peddled to take the country into Iraq, and the financial collapse that we're currently suffering through. They merrily went along with the charade. The Grey Lady, the New York Times, for instance stood four-square behind its shill Judith Miller then, and still employs the hack Adam Nagourney whose spintastic gibberish would have gotten his ass insta-fired at the New York Times of 20 years ago.

    And the final vestiges of editorial spine are snapping. George Will published blatant, factually incorrect statements in an op-ed of his last month that the Washington Post has yet to even address, much less issue a retraction for.

    Newspapers therefore abandoned their core value proposition, to be sources of useful information, a long time ago because it was cheaper. It's just taken a while for citizens and readers to realize that and act accordingly.

    So really, the Internet is only killing what was already dead. But increasingly major investigative style news is being broken by bloggers and citizen journalists, so there is a hope that online real reporting will live again.

    --
    Do what you can, with what you have, where you are.
  16. Re:Google Lawyer Alexander Macgillivray's Blog by geminidomino · · Score: 3, Insightful

    I don't think being one of "the big boys" is mutually exclusive with being spammy, biased, or crappy...

  17. Re:Google Lawyer Alexander Macgillivray's Blog by coryking · · Score: 4, Insightful

    Google should terminate its indexing of any newspaper that threatens to sue them.

    Google needs them just as much as they need Google. Google can be an arrogant bunch at times, and they are a bit green in the ears when it comes to politics. The AP is threatening to sue because aside from legislation, it is one a point of leverage in negotiation.

    I was going to say that Slashdot isn't a good example, but even this very story links to at least two major newspapers who I would guess are part of the NAA. What would Slashdot link to if they pulled the plug on aggregation?

    Bottom line is, in the digital age how can you keep the people who write the stories that you and I are discussing employed?

    Nothing is as easy as it first appears, and if it seems easy, you are probably forgetting something.

  18. Re:Google Lawyer Alexander Macgillivray's Blog by MrMarket · · Score: 5, Insightful

    The Parent and GP are missing the point. Publishers want their content in Google News -- they just want Google to pay them for it.