By Sam Singer
Concerning the print industry’s uncertain future on the web, Sam Zell, Chicago’s newest media mogul, asked this: “If all the newspapers in America did not allow Google to steal their content for nothing, what would Google do? We have a situation today where effectively the content is being paid for by the newspapers and stolen by Google . . . That can last for a short time, but it can’t last forever.”
That was in 2007, back when Zell was still an infant in the newspaper industry. For a man accustomed to opening his mouth and moving markets, Zell likely was startled, if not a bit humbled, when media insiders dismissed him as unversed and out of his element. Google, they reminded, is instrumental for newspapers in their struggle to survive online. The familiar storylines went on from there: Google doesn’t steal content, it aggregates it; Google’s retrieval programs don’t copy stories, they sort them and compress them into hyperlinked headlines; those hyperlinks provide valuable pass-through traffic for news organizations, which can then turn around and raise advertising rates. Most importantly, Google’s aggregating model is not directly profit-driven. Google News does not solicit advertisements, which puts it on cooperative footing with news sites in their efforts to raise their ad profile. In short, Google is the digital hand feeding hundreds of struggling content providers, and here was Zell, three days into the job, biting it.
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Posted on April 6, 2009