New York: Search engine giant Google is
developing a technology that will help newspapers in charging
money from online readers.
In a proposal to the Newspaper Association of America,
Google said it is working on a software that would help
newspapers to charge money from `micro-payment`, a payment
vehicle which would be available both to Google and non-Google
properties within the next year.
"While we believe that advertising will likely remain
the same source of revenue for most news content, a paid model
can serve as an importance source of additional revenue. In
addition, a successful paid content model can enhance
advertising opportunities, rather than replace them," the
It said in a statement that it will mitigate the risk of
non-payment by assigning credit limits based on past
purchasing behaviour and having credit card instruments on
file for those with higher credit limits and using proprietary
risk engines to track abuse or fraud.
Google would also allow readers to utilise single sign-on
capability to access content and manage subscriptions, while
publishers would be able to combine subscriptions from
different titles together for one price.
At present, there are only two newspapers ---Financial
Times and The Wall Street Journal that charge readers for
content, although both offer some free news content to
The search engine site said that paid content model has
two main challenges. First, the content must offer value to
users. Only content creators can address this. The second is
to create a simple payment model that is painless for users.
However, Newspaper Association of America has asked the
companies to provide information on how to generate income
from online contents.
First Published: Friday, September 11, 2009, 16:11