The Study Claiming Google Made $4.7 Billion From News Is Incredibly Flimsy – Slate

The Study Claiming Google Made $4.7 Billion From News Is Incredibly Flimsy – Slate

Marissa Mayer
Google CEO Sundar Pichai delivers the keynote address at the 2019 Google I/O conference.Justin Sullivan/Getty ImagesRussian State-Run Media Mocked Trump’s July 4 CelebrationWe Don’t Deserve the U.S. Women’s National TeamTrump Blames Teleprompter for Revolutionary War “Airports” Gaffe.
Memes Ensue.Watch Dodgers, Padres Play Through 7.1-Magnitude Quake as if Nothing Was HappeningIn the eyes of a lot of journalists and media executives, Google and Facebook are essentially two large and profitable parasites, feeding off the hard, much less profitable work of the news industry. Both companies send a large amount of readers to sites like, say, Slate, but don’t have to pay for the journalism that draws those readers in to begin with. More importantly, Facebook and Google have devoured most of the digital advertising market—combined, they control 59 percent of it—starving a lot of outlets in the process. Because companies can buy targeted ads on a Google search page, they have much less incentive to pay for banner ads on the websites of mid-size metro papers. .

The News Industry Alliance, a lobbying group, has an idea for addressing this market imbalance.
It is urging Congress to give media companies an antitrust exemption that would let them band together and collectively bargain with the tech giants for a share of their news-driven profits. To back this idea, it produced a study, which was covered by the New York Times this weekend, claiming that Google alone generates about $4.7 billion worth of revenue from news searches alone. It’s a stunningly flimsy conclusion. The group arrives at its headline figure with little more than a back-of-the-envelope scribble based mostly on a number one-time Google exec Marissa Mayer mentioned offhandedly during a lunch in 2008. .

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