Google has reached an agreement with News Corporation to pay for content from its news sites. The News Corporation owns The Sun, The Times, the Wall Street Journal, and the Australian, as well as other news outlets.
Although the deal with News Corp did not disclose the worth, it is, however, understood that it would be receiving “significant payments” to feature the company’s news outlets in Google’s News Showcase product, and it will last for three years.
As part of the deal, News Corp will collaborate with Google to have a subscription platform, share revenue from adverts, and invest in Google’s YouTube.
This deal between Google and News Corp is coming on the heel of Australia’s decision to force Google and Facebook to start paying Australian media companies for excerpts of news articles as well as links to news websites.
Google has now threatened to pull out of Australia entirely if the bill currently before the parliament is passed. At the same time, Facebook announced that it would stop publishing news from Australia on its site on Wednesday.
The Chief Email Officer of News Corp, Robert Thompson, thanked Google for “showing a thoughtful commitment that will resonate in every country”. He also said that “the terms of trade” are changing for both News Corp and every other publisher.
He believes that this deal will have a positive impact on journalism globally. Google intends to promote participating publishers in it’s flagship product, “News Showcase,” with publishers having more control over what contents are published and how followers of their news outlets see stories promoted.