Study: Swiss Media Deserve $176M from Google's News Revenue
A controversial study commissioned by Swiss media publishers suggests that news results in Google Search generate a significant portion of Google's annual revenues. The study, conducted by MAZ Media Innovation Lab, claims that media companies should receive a substantial 'fair share' of this revenue.
The study's core assumption is that 55% of Google searches are 'information searches', indicating interest in journalistic topics. However, its methodology has been criticized for attributing a hefty 70 percentage points of Google's search engine advertising revenue to media content, a figure many find unjustified.
The study estimates that consumers are willing to pay CHF 0.50 (about $0.57 USD) per person per month for media content in Google Search results. Meanwhile, the 2023 Reuters Institute Digital News Report reveals that 36% of users sometimes or often try to avoid the news, suggesting a more complex relationship between users and online news.
Google has previously stated that news queries accounted for under 2% of total queries on Google Search globally in 2022, casting doubt on the study's assumptions. The study also misunderstands the symbiotic relationship between digital services and online content, assuming a 'free-ride' dynamic where media companies are not already benefiting from increased traffic and visibility.
The study concludes that Swiss media producers deserve approximately 154 million Swiss francs (nearly $176 million USD) a year from Google. However, news publishers can control whether they are indexed by search tools and change how snippets are created from their content, suggesting they are not entirely at the mercy of search engine algorithms.
The study's findings have sparked debate, with critics questioning its methodology and assumptions. While it highlights the importance of news content in driving search engine traffic, it also underscores the complex dynamics at play between digital platforms, content producers, and consumers. Ultimately, the future of revenue sharing between tech giants and media companies may depend on regulatory frameworks and negotiations between the parties involved.
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