According to Google Director General Eric Schmidt, the online news market is too big for the Rupert Murdoch plan to charge for access to news content to work on it. At the
meeting of the Royal Television Society in Cambridge, the head of the search giant said that despite the positive sales results of the Wall Street Journal site to professional financiers, “in general, these models did not work for consumer goods, because there are
enough free sources on the market, and even the smallest payment does not justify itself with the constantly growing number of these sources ”[
Reuters ].
He further stated: “So I believe that this is possible in the niche and narrowly professional sectors of the market, but not in the market of ordinary news.” Thus, Schmidt supported the Wall Street Journal and the Financial Times in their initiative to charge, but did not leave Murdoch with hope for the rest of News Corp. general orientation such as the
New York Post ,
The Sun or
The Australian .
This is not the most useful comment from Schmidt, especially given Google’s strained relations with newsmen and
recent passages to publishers . However, Google for the first time (albeit only at an experimental level)
shares its revenues with publishers in the Fast Flip project and suggests using its tools to organize payment collection. Indeed, one cannot blame Schmidt for sedition. He expressed what many of us think - we
will have to try hard to convince the generation to start paying, which is used to free content.
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Murdoch's fight plan has shifted from online to mobile technology since the announcement that starting next month, access to the Wall Street Journal content from BlackBerry platform applications will be paid. But so far, none of the News Corp sites have followed this example, so the rhetoric has yet to be supported. The British wing of the company is preparing to launch Sundaytimes.co.uk, the satellite site of the Sunday Times, which will only have online content and editorial. Given the time statements Murdoch, this site may well serve as a platform for experiments on paid access to the content of general orientation.