What's going on?

Google announced late on Sunday that it will end its policy of giving greater prominence in search results to news organizations that offer at least some free content. This could give a huge boost to established news companies who often have primarily paid content!

What does this mean?

For the past decade, Google has enforced a �first click free� policy that allowed those using its search engine to access content that would normally sit behind a �paywall� � and de-emphasized subscription-only articles in search results. The tradeoff for publishers was that they would get more visits to their site; the downside was that readers became far less likely to pay subscription fees.


Under the new rules, Google will not demote any publisher that fails to offer free content. Google is also making tools available to publishers that will make it easier for users to subscribe, for example by offering �one-click� subscriptions using payment data that Google already has from the user.

Why should I care?

For the market: It�s a big positive for major publishers like News Corp and The New York Times Company.

The changes should significantly increase the proportion of users that convert to paying subscriptions. A resumption of subscriber revenue growth would be a boon to a publishing industry that over recent years has had to increasingly rely on digital ad sales, which have proved an insufficient means of funding their operations.


The bigger picture: This is part of a larger battle to court publishers �� and avoid burdensome regulation.

Facebook, Google�s chief rival as a platform for digital advertising, is about to launch its own news subscription program � so it�s an apt time for Google to placate some of the world�s most recognizable publishers by settling this long-running dispute. Also, Google (as well as other tech giants) is facing increasing scrutiny from politicians and competition regulators concerning its now-hugely powerful influence over societies. Throwing the fourth estate a bone during a time of increasingly contentious public focus is probably not a coincidence.