Money Matters, Simplified.
Google to develop software to help online newspapers
by Jaspreet Kaur - September 13, 2009 - comments
Google is in the process of developing a new software that will help online newspapers charge the readers for the content
New York, September 13 -- Very soon online readers might not be able to read newspapers free of cost on the Internet. This is because search engine mogul Google is in the process of developing a technology that will facilitate newspapers in charging money from online readers.
This will significantly help online newspapers generate additional revenue as there is a great readership for newspapers on the Internet. Millions of users from across the globe access the Web to get a daily dose of news.
Google’s proposal to the Newspaper Association of America
Google has presented a proposal to the Newspaper Association of America in which it has stated that it is working on a software that would help newspapers to charge money through ‘micro-payment’.
This payment technique will be made available to Google as well as non-Google properties within the next year.
In a statement released by Google, the company said, “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.”
Google elaborated that it will lessen the risk of non-payment by handing over credit limits. These credit limits will be based on the past purchasing behavior of the users.
Also, the company plans to have credit card instruments on file for people who have higher credit limits and are utilizing proprietary risk engines. This will help trace any misuse or fraud.
Google would make the readers avail the facility of single sign-on capability so that they can access content and manage subscriptions. On the other hand, all publishers will be able to merge subscriptions from different titles together for a single price.
Challenges in front of Google
Google has two daunting challenges in front of it as far as the paid-content model is concerned. Firstly, the content must put forward some value to its users. Secondly, a simple and easy to understand payment model has to be developed so that users do not have to face unnecessary hassles.
As of now, the trend of charging a fee from the online reader is not popular. Almost all the online newspapers provide content free of cost.
At present, there are only two newspapers, i.e., Financial Times and The Wall Street Journal that charge readers for content. However, both these newspapers also provide some free content to their readers.