Google's 'News Showcase' Feature Almost Year Behind Schedule - What Could Be The Reason

  • Alphabet Inc's GOOG Google News Showcase program has hit a roadblock as some media outlets are unhappy with certain contractual terms or payments, Wall Street Journal reported citing people familiar with the situation.
  • The program was announced in 2020 as part of a $1 billion global investment in partnerships with news publishers and is running almost a year behind its intended launch timeline in the U.S.
  • The program pays publishers to feature their content, allowing curated panels of related stories on Google News and some other Google platforms. 
  • Links bring readers to news organizations' websites and, in some cases, allow users free access to normally paywalled content.
  • For some U.S. outlets, one sticking point is a contractual term from Google that says a Showcase deal constitutes all payment that a publisher is entitled to for its content.
  • Several factors have caused delays in the negotiations with the U.S. media outlets. Several publishing executives said that some publishers feel Google isn't paying enough and object to certain contractual terms, including a provision limiting their right to get more money from the tech giant in other ways. 
  • In at least some cases, Google agrees to pay publishers 25% of their promised Showcase fees before the feature launches in their market, according to the journal's documents.
  • Price Action: GOOG shares are down 0.21% at $110.25 during the premarket session on the last check Thursday.
  • Photo by Spencer E Holtaway via Flickr
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