Internet giant Google is planning to roll out a payment platform for newspapers that would allow them to charge for content online.
The Google plan, which was revealed by the Nieman Journalism Lab, was elaborated in a document that company sent to the Newspaper Association of America (NAA) in response to a request for paid-content proposals that the association sent to several technology companies.
Nieman published the Google proposal on its website, www.niemanlab.org, and described Google's initiative as somewhat "surprising" given "the newspaper industry's tenuous relationship with Google."
Details: [Link]
Google outlines its “vision of a premium content ecosystem” that includes subscriptions across multiple news sites, syndication on third-party sites, accessibility to search, and various payment options, including small fees for access to individual pieces of content (known as micropayments).
The company says:
Google believes that an open web benefits all users and publishers. However, “open” need not mean free. We believe that content on the Internet can thrive supported by multiple business models — including content available only via subscription.Google describes its new e-commerce plans as “in production” and “currently in the early planning stages.” The company says that Google Checkout is currently equipped to handle subscription payments for news sites but describes the process for merchants as “fairly rudimentary” and says the system “could be improved to be more relevant for news and media companies.”
The description of Google’s micropayment system is more intriguing:
While currently in the early planning stages, micropayments will be a payment vehicle available to both Google and non-Google properties within the next year. The idea is to allow viable payments of a penny to several dollars by aggregating purchases across merchants and over time. Google will mitigate the risk of non-payment by assigning credit limits based on past purchasing behavior and having credit card instruments on file for those with higher credit limits and using our proprietary risk engines to track abuse or fraud. Merchant integration will be extremely simple.Transaction costs, including credit card fees, are a major hindrance to micropayment plans under consideration by the news industry, which is why Google’s proposal could be appealing. Of course, newspaper companies that have frequently accused Google of leaching off their revenue might be loathe to participate in a joint venture.
